Japan-based conglomerate Mitsubishi Corporation said Friday it will invest in Ayala Corporation joint venture with stake in Globe Fintech Innovations, Inc. (Mynt), the parent company of the Philippines-based finance super app.
Mitsubishi said in a statement that the firm, Ayala and AC Ventures Holding Corp have reached an agreement on Mitsubishi’s investment in AC Ventures subject to the execution of definitive transaction documents and the satisfaction of customary closing conditions.
Ayala is a major conglomerate in the Philippines and AC Ventures currently holds an about 13 percent stake in Mynt.
Under the terms of the agreement, Mitsubishi shall acquire a 50 percent stake in AC Ventures and pursue future investment opportunities.
In addition, Mitsubishi and Ayala are going to sign a memorandum of understanding (MoU) on a comprehensive collaboration in the Philippines.
The MoU covers additional business developments aimed at stimulating the country’s economic growth.
According to the statement, Mitsubishi aims to create a prosperous society and a “Smart-Life” ecosystem in the form of improved lifestyle for consumers by launching multiple attractive businesses that address social issues and consumer needs in each region and country, and organically connecting them.
These ecosystem addresses both challenges faced by social issues and consumer needs, and sustainable growth of our business portfolio.
It is noted that among the various consumer services, digital financial services are positioned as a critical initiative to capture the growth of consumer demand in ASEAN and to realize a society where everyone can easily access financial services (i.e. financial inclusion).
It is also seen as an infrastructure business that organically connects multiple consumer services.
It is also noted that the Philippines is expected to have the highest population and GDP growth among ASEAN countries.
Although relatively few people in the Philippines have bank accounts, most have mobile phones and access to the Internet, which makes the Philippines an attractive market with significant room for growth in digital financial services.
According to the statement, pproximately 80 percent of the country’s citizens have ever tried using the “GCash” mobile wallet, which is Mynt’s core business.
With a vision to accelerate financial inclusion in the Philippines, the product has by far the largest mobile-wallet customer base in the Philippines and has grown into an indispensable service infrastructure, relied on by millions for daily payments, transfers and other financial transactions.
In addition to its digital payments and transfers, Mynt, through its other subsidiaries, also provides access to loan services using non-traditional ways to assign customer credit scores to enable access to fair lending.
It has also expanded its financial services offerings to provide users access to savings, insurance, and investment products.
Furthermore, it has built the largest network of online and offline merchants including social sellers with over 6 million partners while hosting over 1,000 merchant partners in its app, via GLife.
Ayala is among the Philippines’ largest business conglomerates.
Mitsubishi first partnered with it in 1974 and has since built up an impressive, nationwide track record of collaborative businesses in various industries.
This year marks the 50th anniversary of the partnership, and to further enhance the relationship, the two companies have signed an MoU for comprehensive collaboration.
Both Mitsubishi and Ayala are committed to boosting Mynt’s corporate value and leveraging other joint initiatives to create new businesses in the Philippines and contribute to its economic development.
Those efforts will include continuous business development and cross-sales in C2B area* like retail and healthcare, and multifaceted collaborations in mobility, renewable energy, carbon management and elsewhere.
With the Mitsubishi UFJ Financial Group (MUFG) having also announced its investment in Mynt this past August, Mitsubishi and Ayala shall work with MUFG as fellow shareholders to aid the company’s future growth and development, said the statement.
Established in 1950, Mitsubishi develops diversified businesses in a wide range of industries through its eight groups: environmental energy, materials solution, mineral resources, urban development and infrastructure, mobility, food industry, smart-life creation (S.L.C.), and power solution.
Ayala, which is founded in 1834 in the Philippines, has established its presence in real estate, banking, telecommunications, and renewable energy.
The firm has a growing presence in healthcare, logistics, mobility, fintech as well as investments in industrial technologies, education, and technology ventures.
Mynt, a $5 billion unicorn in the Philippines, is a mobile financial services provider.
The firm operates two fintech companies: GXI, the mobile wallet operator of GCash — the finance super app and largest digital cashless ecosystem in the Philippines, and Fuse Lending, a tech-based lending company that gives Filipinos access to microloans and business loans.
Ayala acquires additional 8 percent stake in Mynt for $394.54M