Mitsubishi Corporation is acquiring about 6.5% of Global Fintech Innovations Inc (Mynt), the parent company of Philippines’ major finance super app GCash, according to regulatory filings.
In a disclosure to The Philippine Stock Exchange, conglomerate Ayala Corporation said it has agreed to sell half of its wholly-owned subsidiary AC Ventures Holdings Corporation (ACV) to Mitsubishi for a minimum of 18.4 billion pesos (about $320 million). ACV currently holds about 13% in Mynt.
GCash is a ubiquitous finance super app in the Philippines with over 94 million active users.
“Mitsubishi, Japan’s largest trading company, can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms,” Ayala said.
Mitsubishi and Ayala are also set to execute a memorandum of understanding for comprehensive collaboration to promote further business development in the Philippines and to mark the 50th anniversary of their partnership.
“Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users. It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” said Cezar Consing, President and CEO of Ayala Corporation.
Ayala and Mitsubishi entered into a partnership and cooperation agreement in 1974 that has since featured industrial estates, renewable energy projects, a water utility, and auto dealerships.
In August, Ayala Corporation acquired an additional 8% stake in Mynt for about $393 million, raising its ownership to 13%. The deal values Mynt at approximately $5 billion.
Mynt also 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.
GCash is a joint venture between Alibaba’s Ant Group, Ayala Corporation, and Globe Telecom, through its corporate venture builder 917Ventures.
Mynt became the country’s first tech unicorn in 2021 after raising over $300 million in a funding round that valued the company at over $2 billion. It recorded a net income of 6.7 billion pesos ($115 million) in 2023, thrice of what it was the previous year.
Mynt is reportedly looking at the possibility of applying for a digital banking licence in the country. In an earlier interview with Bloomberg, Mynt CEO Martha Sazon said applying for a digital banking licence is being discussed although nothing definite has been agreed at the moment.