Mynt set to become $1-B company

Richmond Mercurio (The Philippine Star) - September 9, 2019 - 12:00am

MANILA, Philippines — Ayala-led Globe Telecom Inc. sees its financial technology venture as the next big thing as it hopes to turn it into a billion-dollar company in less than two years.

“That’s my goal, to make it a billion-dollar company,” Globe president and CEO Ernest Cu said, referring to Globe Fintech Innovations Inc. (Mynt), the operator of mobile wallet GCash.

“Maybe we can achieve that in 18 months,” he said.

Cu declined to disclose the current valuation of Mynt, which is owned by Globe, Ayala Corp. and Ant Financial, an affiliate of Jack Ma’s Alibaba Group.

“One day data growth will stop. Growth cannot be permanent. We’re preparing for that day. It’s the management’s responsibility to make sure that we have the next game, and we have that with GCash that is big,” Cu said.

With its projected growth, Mynt will need to raise more money, according to Cu.

The Globe executive, however, said the company does not need to get outside capital.

“If we bring someone in, it will be for strategic purposes,” he said.

Mynt’s competitor PLDT’s digital innovations arm, Voyager Innovations Inc. was able to raise $215 million last year from the entry of foreign investors namely, KKR, Tencent Holdings Inc., and International Finance Corp.

Globe has gone beyond the core telco business with major interests in venture capital funding for startups, financial technology, digital marketing solutions, and virtual healthcare.

Cu said Globe’s digital transformation has enabled new industries to thrive in the country’s digital economy, resulting in high adoption rate of online shopping, ride-hailing, and mobile food delivery applications among Filipinos.

“Today, we’re even enabling financial inclusion in this country with the launch and the spread of GCash. GCash is shaping the financial technology landscape in the Philippines and playing a key role in the development of e-commerce in the country which is needed to boost the digital economy,” he said.

GCash now has 20 million registered users, overtaking the total number credit card holders, and over 63,000 partner merchants nationwide to make financial transactions easier for Filipinos.

Globe’s wholly owned subsidiary Kickstart Ventures Inc. is now also managing the Ayala Group’s new $150 million venture capital fund to support startups pursuing innovations along key technology areas in data and analytics, machine learning, artificial intelligence, cloud computing, fintech, automation, real estate, retail, transport, energy, water, health and wellness, and food, Cu said.

“Globe will be at the forefront of innovation using advanced technologies that would help our nation move forward alongside its neighbors,” Cu said.

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