DATA VANTAGE | The PH model, new SE Asia-focused PE funds, and other updates
Edition #458, 8th April 2025
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Dear Reader,
Mitsubishi Corporation’s 18.4 billion pesos (approximately $320 million) investment in Ayala Corporation’s venture arm, AC Ventures Holding Corp, marks a significant development in the Philippine fintech landscape. The deal, which was formalised last week, allows Mitsubishi to acquire a 50% stake in ACV, which currently holds a 13% stake in Mynt, the company behind the country’s most popular e-wallet GCash.
Instead of acquiring shares in Mynt directly, Mitsubishi has opted to partner at the level of Ayala’s venture platform. The move suggests a long-term commitment that goes beyond a one-off fintech bet. It positions Mitsubishi to participate in the future pipeline of digital and technology investments Ayala may undertake, with GCash serving as the most mature and visible asset in that portfolio.
GCash has become the standout player in the Philippine fintech ecosystem, with over 94 million registered users and a strong foothold in payments, lending, and digital financial services. Its growth has not followed the typical high-burn, VC-driven path seen in other Southeast Asian markets. Instead, its rise has been powered by Ayala and Globe Telecom’s ability to pair infrastructure with capital and strategic control. This model has enabled GCash to scale efficiently, monetise faster, and align with regulatory expectations more seamlessly.
At a time when venture funding across Southeast Asia is contracting and valuation discipline is returning, the Philippine model is emerging as a compelling alternative. It favours capital efficiency, platform integration, and operational alignment. For a corporate investor like Mitsubishi, this translates to lower execution risk, better access to established user bases, and a stronger platform for long-term value creation.
The experience of Indonesia’s telco giant Telkomsel illustrates how corporate-backed fintech can falter. Telkomsel’s attempts to build a competitive e-wallet, first through TCash and later through LinkAja with other partners, failed to capture market share. Despite strong initial positioning, both efforts struggled with slow innovation cycles, internal fragmentation, and a lack of ecosystem integration. LinkAja also faced the challenge of going up against better-funded rivals such as GoPay and OVO, which were aggressively spending to acquire users and expand their ecosystems, putting further pressure on its ability to scale effectively. The contrast with GCash is stark. Ayala and Globe enabled Mynt’s leadership to act with urgency and autonomy, supported by strategic capital and clear commercial objectives.
The Philippine model is not without its limitations. The country’s startup ecosystem still lacks a strong pipeline of founder-led ventures and a robust exit environment. However, early signs of diversification are beginning to appear. Corporate venture arms such as Kickstart Ventures and emerging independent funds like Foxmont Capital are actively supporting a new generation of entrepreneurs. These developments could gradually balance the ecosystem and drive more decentralised innovation.
Our preliminary review of Southeast Asia’s venture funding activities in the first quarter reveals that the Philippines outperformed Indonesia in terms of deal value — the full review will be issued in the coming weeks. Indonesia, long regarded as the region’s magnet for consumer tech capital, has seen its shine fade amid ongoing liquidity constraints, high-profile startup failures, and escalating governance issues involving founders. In contrast, the Philippines has been among the few markets in the region that managed to defy downward pressure throughout 2024 and recovered.
Taken together, these signals point to a quiet reordering in Southeast Asia’s digital economy. While the Philippines has historically been overlooked in the regional venture conversation, its distinctive model is now emerging as a market shaped by strategic clarity, institutional capital, and scalable infrastructure. In this environment, disciplined growth is no longer just a hedge, it is the core thesis.
Nine new PE funds in market
As of early 2025, at least nine new Southeast Asia-focused private equity funds have entered the market. These vehicles were first disclosed in 2024 and have yet to reach an interim close. The number marks a slight increase from the six new launches recorded in 2023, suggesting a possible uptick in fundraising activity across the region.
While it may be premature to conclude that sentiment among fund managers has fully turned, the rise in new fund announcements points to cautious optimism. Most of the newly launched funds are pursuing relatively modest targets, continuing the broader trend toward small-cap strategies.
Only one of the nine funds is targeting $500 million, namely Tower Capital PE Fund II. The rest are all aiming below that threshold, underscoring persistent conservatism in fund sizing and deployment approaches in the current fundraising environment.
Encouragingly, four of the nine funds have outlined a dedicated focus on climate or impact themes. This points to growing appetite for sustainability-driven investment strategies in the region. Overall, 28 Southeast Asia-focused PE funds are currently in the market, collectively targeting $8.11 billion. As of March 2025, 32% of that total has been secured.
Source: DealStreetAsia’s DATA VANTAGE
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Other updates from DATA VANTAGE
Singapore-based customer engagement platform [redacted] posted $3.41 million in revenue for the financial year ended March 2024, up 15% from the prior year. This allowed the company to swing to a marginal net profit from a loss previously.
AI-drive data solutions provider [redacted] saw its annual revenue drop to $339,200 for the 12 months ended March 2024, compared to $841,400 a year earlier. The decline pushed the company into the red, reversing a profit in the previous period.
Singapore-based B2B payments startup [redacted] reported a revenue of $54,900 for the year ended March 2024, down from $69,400 a year ago. Despite narrowing revenue, the company managed to reduce its annual net loss.
Edtech-focused SaaS player [redacted] recorded $498,100 in revenue for the financial year ended March 2024, reflecting a 34% decline year-on-year, forcing the company to record a deeper net loss for the latest financial period.
Video optimisation startup [redacted] more than doubled its revenue to $2.3 million for the 12-month period ended March 2024. Despite the growth, the company continued to operate at a loss, which widened to $233,100 from $90,800 in the previous period.
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