Salmon, an Asian provider of consumer lending products and financial services with a license to operate a bank in the Philippines, announced on Friday that its $30 million Series A-2 equity financing round was completed.
Important institutional investors in the business, such as the International Finance Corporation (IFC) and Lunate of Abu Dhabi, participated actively in the planned round by contributing sums that were significantly higher than their pro rata allocation rights.
According to a statement, the money will go toward expanding Salmon’s lucrative lending business and introducing new products that cater to the changing needs of the more than 50 million Filipino customers who are underserved by legacy banks.
Along with expanding the company’s online presence, a portion of the proceeds will also support the company’s marketing initiatives at thousands of retail locations throughout the Philippines.
Furthermore, Salmon hopes to use a portion of the proceeds to fortify the Rural Bank of Sta. Rosa (Laguna)’s capital base, with the goal of raising the bank’s total capital to PHP 1.2 billion by the end of 2025, subject to regulatory approvals from the Bangko Sentral ng Pilipinas (BSP).
The bank will be able to expand going forward with this capital infusion. With one of the highest returns on equity (ROE) among regulated financial institutions in the Philippines, the Rural Bank of Sta. Rosa (Laguna) has become the fastest-growing bank in the nation over the last six months.
“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,” Pavel Fedorov, Co-Founder of Salmon, said.
“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,” he added.
