Philippines' Mynt Hits $5 Billion Valuation with Ayala and MUFG Funding

Mynt, a Philippine e-wallet operator renowned for its famous GCash brand, has increased its worth to $5 billion. This amazing milestone is the result of considerable investments by two major financial institutions: Ayala Corp and Japan's Mitsubishi UFJ Financial Group (MUFG).

In recent announcements, both firms described their distinct contributions to Mynt's expanding financial success. Ayala Corp, one of the Philippines' oldest and most famous conglomerates, said that it had expanded its shareholding in Mynt by 8%. This acquisition, for 22.9 billion pesos ($393.07 million), increases Ayala's overall stake in Mynt to 13%.

The Philippines' investment environment has been especially advantageous for fintech startups because of a significant surge in digital service uptake during the COVID-19 epidemic. This trend has positioned the nation as one of Southeast Asia's fastest-growing fintech marketplaces, offering an ideal environment for startups like Mynt to prosper.

MUFG, Japan's most prominent banking company, recently announced plans to invest $393 million in Mynt, acquiring an 8% share. MUFG has a history of helping creative startups and technology enterprises in Asia-Pacific, including well-known brands such as Grab and Akulaku. MUFG noted that the Philippines' strong mobile phone and internet penetration rates are a solid platform for expanding digital financial services.

Mynt is a joint venture that combines the capabilities of numerous big corporations. Its shareholders include Alibaba, Ant Group, Ayala, and Globe Telecom. Globe Telecom presently owns 35% of Mynt, with Ant Group owning around 34%. This varied ownership demonstrates Mynt's strategic relevance and promise in the digital financial industry.

Since breaking even in the later part of 2021, Mynt's financial performance has received significant notice. Jefferies analysts predict that Mynt will contribute about 20% of Globe Telecom's profits by 2024, reflecting the company's increasing profitability. Mynt's profits are expected to reach approximately $200 million by 2024.

In an interview given in May, Globe Telecom CEO Ernest Cu, who also heads Mynt, said that GCash may seek a public offering in the Philippines by 2025. This transaction might strengthen Mynt's market position and financial capabilities.

Mynt works in a competitive fintech industry, like Voyager, another famous Filipino unicorn with a value of more than $1 billion. As Mynt grows and innovates, its effect on the Philippine fintech industry and the overall economy is expected to rise dramatically.

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