To Arra B. Francia Senior Reporter
The AYALA Corp. (AC) is raising $ 150 million from its business units to launch a venture capital fund, which will enable it to invest in start-ups in various industries, domestic and overseas.
"We have formulated a plan to create a corporate venture capital firm for companies in which we are seeking to raise $ 150 million in new funds within Ayala Corp. and its business units were supported by the CEOs and the Board of the various units, "said Jose Teodoro, CFO of AC, in a press conference after the company's annual meeting in Makati on Friday.
Mr Limcaoco said they hope the amount to be replenished by the middle of the year and then invested in startups over the next five years.
The listed conglomerate will seek startups in the early growth stage in data and analytics, machine learning, artificial intelligence, cloud computing, Financial Technology, Automation, Real Estate, Retail, Transportation, Energy, Water, Health and Wellness, and Food.
The Fund is jointly managed by AC Ventures Holdings Corp. and Kickstart Ventures, Inc., a subsidiary of AC's telecommunications division Globe Telecom, Inc Kickstart has since its inception in 2012 in 39 digital Sta rt-ups invested in seven countries.
Kickstart President Minette Navarette said they plan to issue checks starting at $ 2 -10 million in return for start-up equity.
Prior to this fund, Mr. Limcaoco said that AC has already invested $ 250 million in various industries.
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The aggressive venture capital investments are part of the Group's digitization efforts, including the transformation of existing businesses, new business models and business opportunities, the use of data and analysis, and the promotion of talent.
"We spend a lot of time exploring other markets that are at an advanced stage of digital maturity. We have teams that are constantly investigating emerging trends and technologies," Zobel said.
"As we absorb and learn from these experiences, we have become more aware in our own digital transformation, and have made it a group-wide strategic agenda," he added.
The AC Chairperson cited how their business units approached For example, GCash and the Bank of the Philippines (BPI) are among the leading financial services providers in the digital space.
Mr. Zobel said that GCash still has about 20 million users, with 35 GCash By the end of 2018, BPI's mobile app is now the most downloaded mobile app on the Apple App Store, with 1.6 million downloads and a growing number of active users in the year 2018.
Net profit of AC rose five percent to $ 31.8 billion in 2018, after also having consolidated sales up 13% to 274.88 pbps.
AC shares rose by 1.13% or P10 on close at 8:00 pm each on the stock exchange.