Philippine mobile wallet GCash raises over US$175 million in new capital

MANILA: Philippine mobile wallet GCash has raised more than US$175 million in capital from New York-based private equity fund Bow Wave Capital Management, the financial technology arm of Globe Telecom said.

The capital injection raises the valuation of GCash to close to US$1 billion, according to Globe's disclosure to the stock exchange on Monday (Jan 11). Bow Wave now has a 14 per cent stake in Mynt, which operates GCash, via a local fund it manages.

Globe's stake has been diluted to 40 per cent from 46 per cent, while Globe parent Ayala Corp's share has been reduced to 6 per cent from 8 per cent, a Globe spokeswoman told Reuters.

It also reduces the stake held by Ant Financial, the fintech arm of Alibaba, to 40 per cent from 46 per cent.

“The pandemic has acted as a catalyst in highlighting the importance of digital finance in society today and with this investment from Bow Wave, we look forward to further living out our vision of finance for all,” Mynt President and CEO Martha Sazon said.

Source: Reuters/kv