By Robina Asido

The valuation of one of the leading digital wallet applications in the Philippines soared to $5 billion after securing investments from Ayala Corp. and Japan's Mitsubishi UFJ Financial Group (MUFG).

Ayala Corp. and MUFG are investing about $800 million in Mynt, operator of mobile payments firm GCash, it was announced Friday.

GCash said the investment of the Ayala Corp. and the Mitsubishi UFJ Financial Group , Japan’s largest banking group and one of the largest financial institutions globally, to its parent company Globe Fintech Innovations, Inc. (Mynt) pushed its valuation to $5 billion, "more than doubling its $2 billion valuation from the last funding round in 2021".

In a statement, GCash said "as of 2023, Mynt recorded P 6.7 billion of net income. Through its wholly-owned subsidiary, AC Ventures Holdings, Inc., Ayala will increase its investments in Mynt by acquiring an additional eight percent stake in the Company."

"At the same time, MUFG, through its consolidated subsidiary, MUFG Bank, Ltd. will acquire an 8 percent stake after entering into binding agreements to invest in Mynt," it added.

Martha Sazon, president and CEO of Mynt welcomed MUFG as their new strategic partner.

"With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially to the underserved. Alongside this, Ayala’s unmatched commitment to Philippine economic growth and development, and its expertise in multiple industries will accelerate GCash’s mission,” she said.

Yasushi Itagaki, Senior Managing Corporate Executive, Head of Global Commercial Banking Business Group at MUFG, said “GCash is an indispensable infrastructure for everyday life of Filipinos and we are delighted to join Mynt as a strategic investor to support the growth of the company."

"With our investment, we are excited to expand our contribution to the ongoing development of the Philippines’ digital economy and financial inclusion," he added.

Cezar Consing, President and CEO of Ayala Corp. expressed how their company "likes the long-term growth prospects of Mynt."

"It is a clear leader in a fast growing space and a key contributor to the Philippines’ economic growth. Mynt is valuable because it enables underserved Filipino consumer & business segments to thrive," he said.

"Mynt has seen an unprecedented growth in its user base and transactions in the past four years, fueled by innovations and a keen focus on improving customer experience."

GCash said "aligned with its commitment towards financial inclusion, this fresh investment will further spark economic growth in the Philippines by unlocking financial services to Filipinos".

The proposed investment is subject to the execution of definitive transaction documents and the satisfaction of customary closing conditions. Upon completion, MUFG will join Mynt’s shareholder base and Ayala will increase its stake in Mynt. Morgan Stanley acted as exclusive financial advisor to Mynt," it stated. DMS