Salmon, a leading provider of financial services and consumer lending products in Southeast Asia, operating a licensed bank in the Philippines, today announces the successful completion of its $30 million Series A-2 equity financing round.
Salmon is a pioneering fintech company focused on delivering innovative lending solutions to underserved consumers in Southeast Asia.
By combining cutting-edge AI technology with deep market insights, Salmon empowers individuals to access credit, fostering financial inclusion and driving economic growth in the region.
The planned round saw strong participation from key institutional investors of the Company, including the International Finance Corporation (IFC) and Lunate of Abu Dhabi, with both committing amounts substantially in excess of their pro-rata allocation rights.
The funds will be directed toward continued scaling of Salmon’s profitable lending business and launching new products designed to meet the evolving needs of more than 50 million Filipino consumers underserved by the legacy banks.
A portion of the proceeds will also bolster the company’s marketing activities at thousands of retail locations across the Philippines, as well as expand its online offering.
In addition, subject to receiving regulatory approvals from the Bangko Sentral ng Pilipinas (BSP), Salmon intends to allocate a portion of the proceeds to strengthen the capital base of the Rural Bank of Sta. Rosa (Laguna), with plans to increase the bank’s total capital to P1.2 billion by the end of 2025.
This capital infusion will support the bank’s continued growth.
Over the past six months, the Rural Bank of Sta. Rosa (Laguna) has emerged as the fastest-growing bank in the country, achieving one of the highest returns on equity (ROE) among regulated financial institutions in the Philippines.
“Salmon’s mission has always been to drive financial inclusion, and the Philippines is one of the most exciting markets globally for unlocking access to credit. With this latest investment round, we are positioned to scale our operations even further, bring new products to market, and deepen our partnerships across the financial ecosystem. The recent success of the Rural Bank of Sta Rosa (Laguna), with its exceptional growth and market-leading ROE, is a testament to the potential of combining innovation with a strong commitment to local communities,” Pavel Fedorov, Co-Founder of Salmon, said.
This new investment round underscores the confidence that global institutional investors have in Salmon’s ability to continue delivering transformative financial solutions in the Philippines and beyond.
Salmon Group has disrupted rural banking with its startup strategy model for Rural Bank of Sta. Rosa by strengthening the capital base and accelerating digitalization to drive financial inclusion.
Salmon Co-Founder and Rural Bank of Sta. Rosa Chairperson Raffy Montemayor highlighted the importance of sustainable funding and digital transformation to improve the bank’s products and services and enhance customer experience.
“Digitalization is essential for developing innovative bank products and services that enhance customer experience and expand our reach beyond traditional branches,” Montemayor said.
Montemayor emphasized the role of technology in the development of Rural Bank of Sta. Rosa’s products and customer experience to expand its customer base beyond its physical branches.
He reiterated that the digitalization of Rural Bank of Sta. Rosa (Laguna) will reinforce Salmon’s commitment to creating a robust, marketing-leading consumer fintech ecosystem within the Philippines.
Salmon injected fresh capital to make Rural Bank of Sta. Rosa (Laguna) a stable financial institution by attracting notable investors such as the International Finance Corporation (IFC), Singapore based venture capital fund manager NorthStar Group and Abu Dhabi’s sovereign wealth fund ADQ. The latest investment Salmon received was $7 million from IFC last May.
The investment of Salmon into the Rural Bank of Sta. Rosa (Laguna) and the enhancements made led to the bank’s total deposits soaring by 439 percent to P440 million from P82 million and its loans increasing by 648 percent to P400 million from P54 million as of end of May 2024.