Local online lender bought by UAE-based tech company

By Roderick Abad @rodrik_28 Contributor

ASTRA Tech l lC (Astra), a consumer technology holding group based in the United Arab Emirates (UAE), has entered the financial service market in the Philippines following its acquisition of majority equity in a local online lender.

Signifying its aggressive expansion in the global financial industry, Astra signed on July 18 a share purchase agreement (SPA) to acquire at an undisclosed amount, a 90-percent stake in Filipino-owned financing firm Y Finance Inc.

“Astra Tech acquired Y Finance to enable more seamless transactions on [the] Botim [app],” Abdallah Abu Sheikh, founder of Astra Tech and

CEO of Botim operator Payby Technology Projects llC ., told the BusinessMirror on Wednesday.

Botim is a leading communications platform in the Middle East and North Africa region that was acquired by Astra in 2022—the same year of its inception.

It also made strategic acquisitions of UAE Central Bank-licensed fintech channel PayBy and on-demand home services portal Rizek during the time.

After acquiring several firms, Astra created an app that offers users home, e-commerce, and fintech services that the firm claims “outperforms competitors by three times in terms of speed.”

In its first foray here, Astra will be partnering also with angel investor Y Investments Philippines Inc., who will be a minor shareholder in

Y Finance.

The latter was founded and registered with the Philippines’s Securities and Exchange Commission in 2018. It operates online lending platform “l oanChamp.”

The substantial equity purchase in Y Finance solidified Astra’s commitment to develop cross-border finance products designed to improve the financial well-being of Filipinos residing in the UAE.

These captive markets are considered one of the largest expat communities there, accounting for 6.1 percent of the oil-rich country’s total population.

Sheikh expressed their excitement to embark on this significant milestone in the company’s growth journey.

“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,” he added.

“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 added.

For Y Finance Founder Roger Yang, their partnership “opens up a world of possibilities” for their company.

“We are excited to join forces with Astra Tech, a renowned leader in the consumer technology space. Together, we will revolutionize financial services and empower individuals in the Philippines and beyond,” he said.