What could Mitsubishi and GCash possibly be cooking up?
Over the weekend, Mitsubishi secured a 50% share in AC Venture Holdings (ACV) for a sizable P18.4 billion. ACV is perhaps most sought after for its 13% stake in Globe Fintech Innovations (Mynt)—more commonly known as the parent company to GCash, the Philippines’ most popular e-wallet.
This purchase thus gives Mitsubishi a 6.5% stake in GCash and Fuse, a cashless micro-lending service. The car fanatic in us immediately thought, “G-Mirage?” Or perhaps a GCash app on a new Mistubishi infotainment system?
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Let’s get back to reality. Most likely, the purchase was made to boost the value of a potential initial public offering (IPO), if Mynt decides to bring out GCash to the stock market. A stock exchange debut for GCash has long been rumored, most especially since its $5 billion (P289 billion) valuation. Adding Mitsubishi to the mix should only boost that valuation for an even bigger start in the stock market.
On the Mitsubishi side, the partial acquisition of a fintech giant like GCash gives the Japanese conglomerate a stronger foothold in the cashless payment market in its home country. GCash is available for use in Japan and 15 other countries worldwide.
The 6.5% stake marks the second Mitsubishi transaction with GCash, following an initial $393 million (P22 billion) investment under Mitsubishi UFJ Financial Group (MUFG) back in August 2024.
While a GCash car looks far from reality (should one even be made?), the acquisition looks like a win for the local fintech industry. Mitsubishi and Ayala have also agreed to explore further partnerships in multiple industries.
