Robocash to set up digital bank in PHL

ROBOCASH GROUP is seeking to raise $5 million before it conducts an initial public offering (IPO) as it eyes to launch a bank in the Philippines.

“To start activities by September 2020, the group is now raising $5 million to be used as regulatory capital for a Philippine banking license,” Robocash said in a statement on Thursday.

Australia-based KTM Capital and Foster Stockbroking managed the pre-IPO round and would be on board again for the planned IPO at the end of the year on the Australian Stock Exchange (ASX).

While it considered other bourses in the US, London and Singapore, Robocash said it found ASX to be the most appropriate for its needs.

“We have chosen the ASX because it welcomes fintech companies and, at the same time, it will allow us to feel confident there with our size of business,” Robocash said in an e-mail.

Robocash is looking to raise $70 million which may be allocated to set up a bank in the Philippines and for its expansion in other Asian markets. It said the fundraising could imply post-money market capitalization of over $340 million.

The firm said its planned Una Bank, which will be geared towards digital banking, will be completely in-house. It eyes to roll out an all-digital application process and have cards delivered via courier.

“With Una Bank, we aspire to provide the fastest and the most convenient access to a debit/credit card,” it said.

“We expect to have 40,000 active cardholders in a few months after our online bank goes live in the Philippines,” Robocash Group Founder and CEO Sergey Sedov was quoted as saying in the statement.

Robocash is a loan provider from Russia that ventured into the Southeast Asian market through its Philippine launch in 2017. Golden Legacy Financing Corp. served as its partner for its local lending operations. —