MICROCAPITAL BRIEF: Wave Money - Joint Venture of Telenor, Yoma - Raises $74m in Equity from Ant Financial for Mobile Money in Myanmar

Ant Financial Services Group, a member of the China-based Alibaba Group that operates the online payment service Alipay, recently agreed to invest USD 73.5 million in Wave Money, a joint venture of the Telenor Group and the Yoma Group that provides digital financial services in Myanmar. Ant Financial will take a “substantial minority stake” in Wave Money, which seeks “to leverage Ant Group’s experience in building mobile payment platforms to enhance its digital competence, capabilities, user experience and service offerings.”

Prior to the transaction close, Wave Money is 51-percent owned by Telenor, a Norway-based telecommunications company, with the remainder owned by three members of the Singapore-based Yoma Group, Yoma Strategic Holdings, Yoma Bank and First Myanmar Investment. Following the transaction, Yoma Group will own a total of 33 percent of Wave Money.

Yoma Strategic’s chief executive Melvyn Pun stated, “The COVID-19 situation is accelerating the trend towards a cashless society and drives the growth of e-commerce, and we expect this strategic partnership to massively boost Wave Money’s capabilities to support these trends.”

Alipay, which was founded in 2004, is a mobile and online tool that allows users to: (1) send money to individuals; (2) pay bills; and (3) make purchases remotely and at points of sale via quick response (QR) codes. Alipay reports serving 1 billion customers as of August 2019. Ant Financial, which was founded in 2014, has units dedicated to credit scoring, technology services for financial institutions, a wealth-management app, and an online bank for small enterprises. For the fiscal year ending March 2020, Alibaba Group reported revenue of RMB 510 billion (USD 71.5 billion).

Founded in 1855, Telenor Group provides mobile services to 186 million subscribers in nine markets in Europe and Asia as of 2019. During that year, its sales totaled USD 12 billion. Telenor Myanmar was established in 2014 and has 786 employees, total revenues of NOK 5.8 billion (USD 590 million) and 22 million mobile subscribers, also as of 2019.

Founded in 1993, Yoma Bank operates 80 branches in Myanmar, employing approximately 3,000 people. As of 2018, it has total assets of MMK 2 trillion (USD 1.3 billion), deposits of MMK 1.8 trillion (USD 1.1 billion) and a loan portfolio of MMK 1.4 trillion (USD 880 million).

Established in Singapore in 2006 with operations in Myanmar, Yoma Strategic is a holding company providing “sustainable investment opportunities” through “ethical and equitable business practices.” For 2019, it reports a net profit of USD 42 million and return on equity of 6 percent on revenues of USD 100.7 million and total assets of USD 1.2 billion.

Established in 1992, First Myanmar Investment reports 2019 revenue of MMK 168 billion (USD 118 million).

The Yoma Group, whose shares trade on exchanges in Singapore and Myanmar, is the operating arm of Serge Pun & Associates, the SPA Group.

By Jessica McLeod, Research Associate

Sources and Additional Resources

Yoma press release
https://www.yomastrategic.com/attachment/2020051807032228978584_en.pdf

The Straits Times news release
https://www.straitstimes.com/business/companies-markets/yoma-strategics-mobile-payments-joint-venture-in-myanmar-ties-up-with

Wave Money Myanmar homepage
https://www.wavemoney.com.mm/

Ant Financial Services Group homepage
https://www.antfin.com

Alipay homepage
https://intl.alipay.com

Alibaba Group financial report
https://www.alibabagroup.com/en/news/press_pdf/p200522.pdf

Yoma Strategic 2019 financial report
https://www.yomastrategic.com/attachment/201907101119561777083314_en.pdf

Yoma Bank homepage
https://www.yomabank.com