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Jofie Yordan · · 4 min readGCash eyes IPO, rejects digital bank route
US$5 billion.
That’s the valuation of fintech firm GCash now, following its latest funding round from Philippine conglomerate Ayala Corporation and Japanese banking giant MUFG.
GCash, which held 89% of the Philippines’ mobile wallet app market share in 2023, is now aiming for an IPO in its home turf.
However, the timing of the listing has not been finalized.
There is “no target date” for the IPO since “a lot of it depends on market conditions,” said Ernest Cu, president and CEO of GCash’s parent firm Globe Telecom, in an exclusive interview with Tech in Asia at the TIA Conference in Jakarta, Indonesia, last week.
Ernest Cu (left), CEO and president of Globe Telecom / Photo credit: Tech in Asia
He noted that market conditions in the Philippines are getting better, with interest rates beginning to drop and inflation slowing down.
Cu says GCash is “getting ready for the IPO” and wants to be “push-button ready.”
See also: From telco to ‘techco’: the Philippines’ Globe seeks next unicorn after GCash success
Most Southeast Asian tech firms including super apps Grab and GoTo have seen significant declines in value after going public. Yet Cu is optimistic that GCash will fare differently as it is already profitable, whereas Grab and GoTo were “all about GMV (gross merchandise value)” when they listed.
GCash has been profitable on an EBITDA basis since 2021 and was net profitable in 2022, according to Cu.
Paying with GCash in the Philippines / Photo credit: MDV Edwards/Shutterstock
GCash expanded its services in March, giving access to over 10 million overseas Filipinos in 16 countries across Asia, Europe, and North America.
The IPO drought
No digibank plans
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The Philippines-based fintech firm has been profitable since 2021 and is now valued at US$5 billion.
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