GCash is ‘ripe for an IPO’ in 2023, Filipino parent company says

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GCash, the leading mobile money wallet in the Philippines, is ready for an initial public offering (IPO) and will be ready to push the button this year, the CEO of its parent company has stated.

In a recent interview, Ernest Cu said that GCash has the users and profitability to be a successful IPO. Cu, who recently spoke to Bloomberg TV, is the CEO of Globe Telecom (NASDAQ: GTMEF), the parent company of GCash.

“We’re pretty much ripe for it. The growth is there; the profitability has been there for almost two years now. The plan is to be push-button ready by the end of the year. Let’s see where it takes us,” he said.

Launched in 2004 as an SMS-based money transfer service, GCash has evolved to incorporate features such as QR payments, online checkout, bill payment, and savings and lending services. The pandemic accelerated its growth as digital payments and online commerce skyrocketed. This growth saw GCash become the first fintech unicorn in the Philippines in November 2021.

To evolve with the growth in the digital payments sector, GCash announced its entry into digital currencies in 2022. In April this year, it launched its in-app digital currency feature, known as GCrypto, to all its users for the first time.

By going public, GCash would spin off from Globe, allowing it to chart its own path and develop solutions that may not fit in with its telco parent firm, a move many in the Philippines have been calling for.

The mobile wallet dismissed calls for an IPO last year, blaming the tech winter. CFO Tek Olano said at the time that the company would focus on growing the business as it awaited a more opportune time. He claimed the wallet had over 71 million users last September.

Watch: GCash’s learning hub is powered by Bitskwela