GCash in no hurry for IPO as e-wallet value thickens to $1-B, posts profit

Art Fuentes and Bruce Rodriguez, ABS-CBN News

Posted at Aug 09 2021 09:10 PM | Updated as of Aug 10 2021 02:46 AM

MANILA - GCash is in no hurry to mount an IPO even as its valuation rises to nearly $1 billion and it posts its first profit after years of operations, its officials said on Monday. 

GCash, which boasts of over 43 million registered users and over 2.5 million merchants and social sellers, said its monthly gross transaction value has breached P200 billion and reached a milestone by achieving positive income last June

Mynt, the operator of GCash, has no problems with fundraising and doesn’t “need to go public right now,” said Ernest Cu, president and CEO of Globe Telecom, the parent firm of GCash.

Cu said that while there is a “clamor to list” GCash, there is no timeline set for the fintech powerhouse to go public. 

“We are not going to IPO for IPO’s sake,” Cu said during an online briefing on Globe Telecom’s second quarter results. 

Despite the company achieving profitability in June, Cu said that GCash’s focus is growth. 

“Growth remains the key driver because there are still so many opportunities out there that we can get into-- serve the public--because there are so many problems to be solved in terms of financial inclusion,” Cu said. 

Mynt president and CEO Martha Sazon meanwhile said that achieving profitability was a milestone for the fintech firm.

"What it also tells us is that now we know the levers to pull whether in revenues or costs to achieve a good financial position for GCash," Sazon said. 

The company is also on track to hit P3 trillion in transaction value this year, she said. GCash has also been moving into financial services like savings, credit, investments and insurance -- which is dominated by conventional banks.

Sazon reported that GCash’s investment service now has a 70 percent market share of UITF (unit investment trust fund) accounts, and its insurance services now makes up a third of new policies. 

Mynt is also looking to more than double its valuation to $2 billion in its future fundraising, Nikkei Asia reported last month quoting a top executive.

Cu meanwhile said the company "will take the valuation question as we go.” 

“Certainly, of course, the higher the better but we're also being realistic as far as the limitations of being based out of the Philippines."

"We certainly would endeavor to bring valuation as high as possible," Cu said in response to a reporter’s question on whether the company could become a “decacorn” or a startup valued at around $10 billion. 

"It's an aspiration and who knows we may get there."

Globe posted a net income of P13 billion in the first 6 months of 2021, higher by 13 percent compared to the same period last year, it said Friday. 

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