Manila, Philippines, December 4, 2018—IFC,
a member of the World Bank Group, and the IFC Emerging Asia Fund are investing
$40 million in Voyager Innovations, a Philippine financial-technology company
that promotes financial inclusion by expanding the use of digital payments.
The equity funding is part of a $215 million package that marks the largest
investment in a Philippine tech company.
The investment is expected to increase access
to finance in the Philippines for millions of people. Currently, only about
one-third of the Filipino adult population has a bank account. With this
investment, IFC will support the expansion of Voyager Innovation’s PayMaya
mobile wallet, which allows users to carry out cost-efficient and convenient
financial transactions through their smartphones. According to a Findex
survey, 95 percent of Filipino payers are using cash to settle their bills,
with only 25 percent of the adult population having made or received any
digital payment in 2017.
PayMaya also operates a merchant business
that enables small and medium enterprises to accept a wide range of digital
payments. PayMaya’s ability to provide mobile banking to people and a
digital payment solution to SMEs is unique in the Philippines. That makes
PayMaya ideally suited to improve the digital payment infrastructure in
“Tech companies like Voyager Innovations
are increasingly allowing people to perform a variety of financial transactions
on their smartphones,” said Marcos Brujis, Chief Executive Officer, IFC
Asset Management Company, which manages the IFC Emerging Asia Fund. “This
investment will help grow digital infrastructure in the Philippines and
provide formal financial services for millions of people and small businesses.
This growth should also help generate good financial returns for our investors.”
“Fintech holds great potential to help the
Philippines overcome development challenges by making widespread access
to financial services at affordable prices,’ said Vivek Pathak, IFC Director
for East Asia and the Pacific. “This investment in Voyager Innovations
affirms IFC’s interest in supporting technology-driven solutions and innovative
business models that will create new markets for accessible and affordable
financial products and services that can improve the lives of more Filipinos.”
Voyager Innovations is a subsidiary of PLDT.
IFC will join KKR and Tencent as new incoming investors. This combination
of shareholders combines local knowledge, global expertise, and a strong
understanding of the financial services industry.
The IFC is a prominent investor in fintech
in emerging markets with a portfolio of over 35 companies globally. IFC
has a long history of promoting new technologies that increase the reach
and lower the cost of access to financial services. In fiscal year 2018,
IFC invested $376 million in initiatives related to technology, including
funds mobilized from other investors—expanding its portfolio in this sector
to more than $2.4 billion.
IFC—a sister organization of the World
Bank and member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
with more than 2,000 businesses worldwide, using our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In fiscal year 2018, we delivered more than $23 billion in
long-term financing for developing countries, leveraging the power of the
private sector to end extreme poverty and boost shared prosperity. For
more information, visit www.ifc.org
About IFC Asset Management Company
IFC Asset Management Company, LLC, a wholly
owned subsidiary of IFC, mobilizes and manages capital to invest in businesses
in developing and frontier markets. Created in 2009, AMC provides leading
institutional investors with unique access to IFC’s emerging markets investment
pipeline and investment expertise, while providing positive development
impact in the countries in which it invests. AMC funds’ investors include
sovereign wealth funds, pension funds, and development-finance institutions.
It has raised approximately $10 billion across 13 investment funds covering
equity, debt, and fund-of-fund products. For more information, visit www.ifcamc.org