Mitsubishi Corporation, backed by Warrent Buffett, is set to acquire approximately 6.5% of Global Fintech Innovations Inc (Mynt), the parent company of the Philippines’ major finance super app GCash, according to regulatory filings.
In a disclosure to The Philippine Stock Exchange, conglomerate Ayala Corporation announced it has agreed to sell half of its wholly-owned subsidiary, AC Ventures Holdings Corporation (ACV), to Mitsubishi for at least 18.4 billion pesos ($320 million). ACV currently holds about a 13% stake in Mynt.
GCash, a ubiquitous finance super app in the Philippines, boasts over 94 million active users. The investment by Mitsubishi, Japan’s largest trading company, is expected to bolster Mynt’s growth both overseas and within Mitsubishi’s extensive Japan-based ecosystem.
Ayala Corporation highlighted that the partnership would enhance areas like cloud-based payments and new credit algorithms.
“Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users,” said Cezar Consing, President and CEO of Ayala Corporation. “It’s all about better serving the many Filipinos that depend on GCash and Fuse, and making a wider variety of financial and other products available to as many Filipinos as possible.”
In addition to the stake acquisition, Mitsubishi and Ayala are set to execute a memorandum of understanding for comprehensive collaboration to promote further business development in the Philippines, marking the 50th anniversary of their partnership.
The two conglomerates have a longstanding relationship dating back to 1974, featuring collaborations in industrial estates, renewable energy projects, water utilities, and auto dealerships.
Earlier in August, Ayala Corporation increased its stake in Mynt by acquiring an additional 8% for about $393 million, raising its ownership to 13%. This deal valued Mynt at approximately $5 billion.
Moreover, Mynt announced that Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking group, is also acquiring an 8% stake in the company through its subsidiary, MUFG Bank Ltd. The involvement of both Mitsubishi entities signifies strong Japanese interest in the Philippine fintech sector.
GCash is a joint venture between Alibaba’s Ant Group, Ayala Corporation, and Globe Telecom, through its corporate venture builder 917Ventures. Mynt became the Philippines’ first tech unicorn in 2021 after raising over $300 million in a funding round that valued the company at over $2 billion.
The company reported a net income of 6.7 billion pesos ($115 million) in 2023, tripling its earnings from the previous year. With the new investments, Mynt is reportedly exploring the possibility of applying for a digital banking license in the country.
Mynt CEO Martha Sazon mentioned in an earlier interview with Bloomberg that while the application for a digital banking license is under discussion, no definitive decisions have been made.