PLDT's KKR Stake: A Strategic Move for Philippine Fintech

PLDT, the Philippines' largest fully integrated telco network, has announced a strategic partnership with KKR, a global investment firm, and Tencent, an internet services provider in China, to invest in Voyager Innovations, a technology company focused on developing customer-centric emerging market platforms. This move is expected to accelerate digital and financial inclusion in the Philippines and enable the broader Filipino population to participate in the digital economy.

The investment, which totals US$215 million, is the largest private fund raising to-date in a Philippine technology company. PLDT will remain the majority shareholder of Voyager Innovations, while KKR and Tencent will acquire a substantial minority stake in the company. The agreements also contain provisions for Voyager Innovations to issue additional shares to other investors, which could potentially reduce PLDT's ownership to less than 50% but still maintain its position as the largest shareholder.

Voyager Innovations supports a range of digital services, including PayMaya, a prepaid payment wallet service; PayMaya Business, the largest mobile acquiring service in the Philippines; Smart Padala, the largest mobile-based remittance network; Lendr, the largest digital lending platform; and freenet, the most popular rewards app for free access to the internet and apps in the Philippines.

The partnership with KKR and Tencent is expected to provide Voyager Innovations with the global expertise and fresh capital needed to execute its vision and drive growth. Manuel V. Pangilinan, Chairman and CEO of PLDT and Smart Communications, stated that the investment demonstrates the investors' confidence in Voyager's ability to execute its vision and in the Philippine technology industry as a whole.

Orlando B. Vea, President and CEO of Voyager Innovations, expressed his excitement about the partnership, stating that it will enable Voyager to reach more Filipinos, especially as access to digital financial services becomes even more important. Shailesh Baidwan, President of Voyager Innovations and PayMaya Philippines, added that the investment will support the company's financial inclusion thrust and allow it to expand to adjacent services.

The partnership aligns with PLDT's long-term investment strategy, particularly its focus on stability and consistent growth. By investing in Voyager Innovations, PLDT is diversifying its revenue streams and tapping into the high-growth potential of the fintech sector. The partnership also supports PLDT's commitment to financial inclusion and digital transformation in the Philippines.

In conclusion, PLDT's investment in Voyager Innovations, facilitated by the partnership with KKR and Tencent, is a strategic move that aligns with the company's long-term investment strategy. This partnership will enable PLDT to expand its digital financial services, enhance financial inclusion, and drive growth in the Philippine fintech sector. With the support of global expertise and fresh capital, Voyager Innovations is well-positioned to execute its vision and accelerate digital and financial inclusion in the Philippines.