Ayala launches $150 M venture capital fund

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, announced yesterday the launch of a new venture capital fund worth at least $150 million.

During the company’s annual stockholders meeting, Ayala Corp. chairman Jaime Augusto Zobel de Ayala said the conglomerate would invest the fund in new technologies worldwide that could complement the company’s business activities.

“With this new fund, Ayala seeks to focus on startups in their early growth stage and support tech innovations in data and analytics, machine learning, artificial intelligence, cloud computing, fintech, automation, real estate, retail, transport, energy, water, health and wellness, and food,” Zobel said.

Ayala Corp. chief finance officer Jose Teodoro “TG” Limcaoco said the $150 million fund would be managed by Globe’s Kickstart Fund.

The fund will enable Ayala to “ride disruption and engage with new technology-enabled challengers.”

Ayala Corp., Ayala Land Inc., BPI, Globe, AC Energy and other selected invited investors have committed to raise the amount, Limcaoco said.

Kickstart is the corporate venture capital subsidiary of Globe with investment decisions overseen by senior Ayala Group executives.

Kickstart has invested in 39 digital startups in seven different countries since 2012. This fund is the largest effort of its kind in the Philippines, and the first conglomerate-wide strategic venture capital fund in the country.

The move is part of Ayala Corp.’s digital transformation.

“We have started to participate in digital businesses that we believe are disruptive. These investments are designed to complement our group’s traditional brick-and-mortar operations, future-proof our existing portfolio, and broaden the digital experience of Filipinos.

We spend significant time studying other markets that are in the advanced stages of digital maturity and we have teams constantly looking at emerging trends and technologies. Absorbing and learning from these experiences, we have become more deliberate in our own digital transformation journey and have elevated it into a group-wide strategic agenda,” said Zobel.

Through digital transformation, Ayala is harnessing the power of technology as it remains fully committed to reinventing its businesses to help bridge societal gaps, make a lasting and meaningful impact on society, and help improve Filipino lives.