Astra Tech Acquires 90% Stake of This Local Financing Company
UAE-based technology holding group Astra Tech shares its plans to acquire 90% of the stakes of Y Finance, a financing company that operates in the Philippines.
According to Statista, the financial intermediation services sector accounted for a value-added of approximately 10% of the country’s gross domestic product (GDP) in 2022. This percentage shows the importance of this sector in an economy, especially as it helps businesses.
Investopedia shares that a healthy financial sector is important in stabilizing the economy. With services like providing loans for businesses, granting mortgages to homeowners, and issuing insurance policies, there are several other opportunities that this sector has for business owners.
There are several financing companies in the country and one of those is Y Finance—which is about to be 90% acquired by UAE-based consumer technology holding group Astra Tech. This is being done as part of Astra Tech’s expansion to international markets.
About the Planned Acquisition
Through the planned acquisition of Y Finance, Astra Tech aims to leverage its technology, resources, and funding so it can improve its financial services. The agreement between the two parties also shows how they can be better known in the international market.
“We are excited to embark on this significant milestone in Astra Tech’s growth journey,” says Astra Tech Founder and Botim Chief Executive Abdallah Abu Sheikh. “The acquisition of Y Finance aligns perfectly with our vision to bring innovative financial services to a broader audience and cater to Filipino expats in the UAE and the Philippines.”
“We believe that by combining our expertise with the extensive market knowledge of Y Finance, we can create even greater value for our customers and simplify their everyday lives,” he adds.
In line with this move, the tech firm also emphasizes that Filipinos are one of the largest expat communities in the UAE, accounting for about 6.1% of the country’s total population.
What the Acquired Party Thinks
“As an angel investor and strategic partner, Y Investment is proud to be a part of this groundbreaking collaboration. We firmly believe in the potential of Astra Tech and Y Finance to drive innovation and reshape the financial landscape. Through this partnership, we aim to support the growth of Y Finance and bring transformative financial solutions to the market,” shares Y Finance Philippines Founder Roger Yang.
Through the years, Y Finance has been recognized as a trusted name in the Philippines’ local lending sector. In fact, they are behind some of the most successful online lending platforms as they provide efficient financial solutions to their clients.
With this partnership between Astra Tech and Y Finance, both parties can make use of their expertise—technology, and finance knowledge—to provide Filipinos with smoother services that will help finance businesses, especially those that are in need of loans to launch or redevelop one.