New York-based Bow Wave Capital investing $175m in GCash operator

New York-based investment firm Bow Wave Capital Management  is infusing more than $175 million into Globe Fintech Innovations Inc. (Mynt), the financial technology arm of Globe Telecom and the operator of mobile wallet GCash. 

Mynt said it raised over $175 million in fresh capital from ASP Philippines LP, a limited partnership fund managed by Bow Wave Capital Management  to spur the growth of financial inclusion and the digitization of payments and financial services in the Philippines. 

It said the fresh capital would be issued in multiple tranches, with post-money valuation of the final tranches at close to $1 billion.

“This investment from Bow Wave is a validation of both what we have accomplished as well as the potential of GCash in unlocking digital services in the Philippines,” Mynt president and chief executive  Martha Sazon said.

“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, enabling democratized access to payment and financial services to every Filipino,” she said. 

GCash helped Filipinos get through their daily lives by providing them with convenient, safe and secure digital payment options last year.

As more and more Filipinos turn to digital services, GCash recorded gross transaction value of over P1 trillion in 2020, spurred by services like online payments, bank cash-in and sending money. 

GCash empowered over 33 million Filipinos with digital financial tools and services through its innovative mobile wallet.  

Users have been able to maximize the use of their mobile wallets to transact physically and online, to purchase airtime load, to open deposit accounts, to save and invest in money market funds and to acquire insurance products.

“We have made significant gains in 2020 that further cemented our status as the leading Finance app in the country. We are further encouraged by the fact that Mynt’s momentum has continued, even as the country moved out of quarantine restrictions, suggesting a fundamental shift in our customers’ behavior towards a cashless lifestyle,” Ernest Cu, chairman of the board of Mynt, said. 

 “We are confident in Mynt’s future prospects as a unicorn in the Philippines,” he said.

Bow Wave is a close-ended private equity fund with a mandate to invest globally in online and mobile payment ecosystem companies, particularly in strategic partners and investments of the Ant Financial and Alibaba Group. 

Bow Wave’s investment in Mynt, its first in the Philippines, will translate into a minority equity interest in the Mynt. Other terms of the investment remain confidential.

 “Mynt has made great strides in the fintech space in the Philippines. Recognizing this fact and our shared values, Bow Wave supports the vision of Mynt to provide finance for all Filipinos. We are excited for this investment, and we hope to add value to Mynt as it realizes its vision,” said Itai Lemberger, founder and chief information officer of Bow Wave.

UBS AG acted as financial advisor for Mynt for the transaction.

Topics: Bow Wave Capital Management , GCash , ASP Philippines LP , Ernest Cu , Globe Fintech Innovations Inc , Mynt
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