A $100 million funding round was announced on Monday by technology financial firm Salmon Group, which is a major step toward improving the company’s growth trajectory in the Philippines.
According to a statement from the company, the transaction was substantially oversubscribed, demonstrating strong investor confidence in Salmon’s business model and its capacity to carry out its vision in one of Southeast Asia’s most dynamic consumer finance markets.
The $60 million equity component includes a list of well-known US-based venture investors.
In addition to Washington University Investment Management Company (WUIMC), Moore Strategic Ventures, FJ Labs, and other current Salmon investors, Spice Expeditions led the round.
The money raised will be used to expand Salmon’s product line, strengthen its distribution network throughout the Philippines, increase Salmon Bank’s capitalization, and expand Salmon Group’s overall balance sheet capacity.
In addition to the equity round, Salmon Group’s current $150 million Nordic bond program successfully issued $40 million in public bonds at an effective yield of 13.7%.
The market’s recognition of Salmon’s credit quality and growth fundamentals is demonstrated by the offering’s successful issuance, which was carried out in the midst of unstable global capital market conditions with top fixed income investors.
Salmon’s lending portfolio will continue to expand thanks to the bond proceeds.
The dual-tranche structure, which combines public debt and equity, broadens Salmon’s source of funding and puts the business in a position to grow its balance sheet steadily while upholding a strict approach to capital management.
The statement claims that with a sizable underbanked population and quickly growing digital adoption of financial services, the Philippine consumer finance market offers a very attractive opportunity.
Operating through a bank licensed by the Bangko Sentral ng Pilipinas (BSP) and a financing company licensed by the Securities and Exchange Commission (SEC), Salmon Group focuses on enhancing the customer experience and sets itself apart with its execution speed and quality.
“This round is validation of what we have been building – an always-on bank and financial services super-app for every Filipino, run with discipline and a long-term mindset,
“By now, Salmon App is one of the most loved (4.8 in App Store and Google Play) financial mobile apps in the country and one of the most reliable, with 99.9 percent uptime,” said Pavel Fedorov, Co-Founder of Salmon Group.
“We offer the best deals in the market – Salmon Credit has the longest grace period of up to 62 days, Salmon Bank offers one of the most appealing 8 percent term deposit rates, and exciting new products will soon offer fantastic deals to our customers,
“The capital will allow us to move faster on every front: more products, more reach, even greater capitalization of Salmon Bank, and better experience for our customers,” he added.
