GCash to surpass parent firm’s valuation

MANILA, Philippines — E-wallet giant GCash is likely to exceed parent firm Globe Telecom Inc.’s valuation, given its rapid growth.

Speaking at the 20th anniversary celebration of GCash on Thursday night, Globe president and CEO Ernest Cu said GCash has achieved an impressive set of milestones.

“Imagine this little child of ours, which occupied a small number of square meters in the Globe Tower, its valuation is now close to the mother company,” he said.

“And I think given the growth potential, it could very well be that one day our fintech business will be larger in market cap than our telco business,” he said further.

From a $100 million valuation in 2017 after Chinese fintech giant Ant Financial Services Group took a substantial stake, GCash’s valuation has now risen to $5 billion following investments from Mitsubishi UFJ Financial Group, the largest banking network in Japan.

Globe’s market value, meanwhile, stands at around $6 billion.

GCash president and CEO Martha Sazon told reporters that if the fintech player continues its growth, its valuation may reach the same as Globe’s in the next few years.

“Maybe if we continue with our double-digit growth, hopefully, we will reach the same level,” she said.

With GCash now having 94 million users, she said the focus is to increase the frequency of use.

She said GCash also wants more Filipinos, particularly those in rural areas, to use the service.

“We know it’s faster, more efficient and they can discover more services that could help them in their everyday lives,” she said.

Asked about plans for an initial public offering (IPO), Cu said preparations are underway but no definite date has been set for when this will take place.

He also said a US listing is less likely, with an IPO in the Philippines seen as a better option for the fintech giant.