In a significant financial move, Ayala Corp., the Philippine conglomerate led by billionaire Jaime Zobel de Ayala, has announced a deal in which Mitsubishi Corp., Japan’s largest trading company, will pay 18.4 billion pesos (approximately $318 million) for a 50% stake in Ayala’s wholly-owned investment arm, AC Ventures. This transaction focuses on enhancing mutual interests in the fintech sector, particularly concerning GCash, the Philippines’ leading mobile e-wallet service. The agreement is contingent upon regulatory approval, and reflects Ayala Corp.’s ongoing strategy to form alliances that can bolster the growth of its investments in technology and new business models.
AC Ventures currently holds a minority interest of 13% in Globe Fintech Innovations (Mynt), the company behind GCash and the mobile-based micro-lender Fuse Lending. The partnership with Mitsubishi is poised to leverage the Japanese firm’s extensive global network and resources, enabling Mynt to expand its operations not only within the Philippines but also in international markets. It’s expected that Mitsubishi’s expertise in areas such as cloud-based payment solutions and advanced credit algorithms will be instrumental in enhancing GCash’s offerings. Ayala Corp. emphasized the value that Mitsubishi brings to the table, particularly in enhancing services for the millions of Filipinos who rely on GCash for their daily transactions.
This deal follows an impressive $800 million investment in Mynt that was jointly made by Ayala Corp. and Mitsubishi UFJ Financial Group earlier in August, which positioned Mynt’s valuation at an impressive $5 billion. The financial restructuring allowed Ayala to increase its stake in Mynt from 8% to 13% after investing 22.9 billion pesos, alongside Mitsubishi UFJ Financial’s MUFG Bank acquiring an additional 8%. These investments reflect a concerted effort by both Ayala and Mitsubishi to deepen their financial commitments and foster significant growth within the fintech landscape of the Philippines.
Mitsubishi’s renewed partnership with Ayala, which has spanned across five decades, highlights a long-standing relationship that has previously seen joint ventures in a multitude of sectors such as energy, industrial estates, and automotive dealerships. According to Cezar Consing, the CEO of Ayala Corp., this ongoing collaboration is viewed as a strategic move to increase the value Mynt can deliver, with the overarching goal of better serving the growing customer base of GCash and its associated services.
The performance of Mynt has been noteworthy; it reported a net income of 6.7 billion pesos in 2023—triple the amount recorded in 2022—driven largely by the increase in GCash transactions and its mobile payment infrastructure. With over 94 million registered users, GCash is not only the leading fintech solution in the Philippines but also plays a crucial role in driving financial inclusion in a country where a significant portion of the population remains unbanked. Mynt also contributed 2.1 billion pesos to Globe Telecom’s first-half equity income, underscoring its importance in the parent company’s financial ecosystem.
Founded in 1834, Ayala Corp. has a rich history that began with a distillery in Manila. Over the decades, it successfully diversified into various sectors, including banking, real estate, telecommunications, and energy. The Zobel de Ayala family, with a net worth of approximately $2.6 billion as per Forbes Asia’s latest report, remains at the helm of this illustrious enterprise. The partnership between Ayala Corp. and Mitsubishi is anticipated to further enhance Mynt’s capabilities and market presence, shaping the future of digital finance in the Philippines and beyond.