Philippines: Uploan, a Philippines-based fintech company providing payroll financial services, has raised a senior secured loan of up to US$15 million from debt financer Lendable.
As per a press note, US$6 million will be available for immediate usage to support Uploan’s “fast-growing” demand.
Uploan is Lendable’s first client in the Philippines. The long-term facility will allow Uploan to grow its loan book, redeploy Lendable’s capital, and hold more exposure on-balance sheet.
The transaction’s security structure, complying with new regulations adopted in 2020, also establishes a secured debt infrastructure that paves the way for the fintech company to expand its institutional debt into the future.
Founded in 2017, Uploan offers loans, salary advances, and insurance products — with the goal of improving the financial well-being of working Filipinos.
The company claims it currently partners with over 100 corporates in the Philippines.
Uploan admitted that it faced its fair share of headwinds during the pandemic. As the country imposed a lockdown and its GDP plunged by 10 percent, two debt repayment moratoriums froze Uploan’s revenue for an extended period.
Despite that, the company claims it grew its customer base to more than 300,000 employees serviced while avoiding a spike in non-performing loans
“Filipinos are facing unprecedented financial distress and many don’t have enough money to make ends meet despite being in employment. The debt facility we have closed with Lendable will be catalytic in enabling us to better meet the needs of our fast-growing employee pool. Working with progressive employers, we are committed to helping millions of Filipinos move out of financial distress over the coming years,” said Liam Grealish, CEO of Uploan.
“We are excited to close this facility with Uploan and expand our reach to new markets in Southeast Asia. The team has navigated the exceptionally difficult operating and macroeconomic environment in the Philippines during covid. Through the diligence process, we have seen Uploan evolve and emerge as a stronger firm,” noted Aaron Collett, Head of Asia Origination at Lendable
“The company is poised to scale further at a time when the broader financial sector is pulling back, a high-impact opportunity to provide financing when people face extreme economic conditions and need financial access the most. Uploan’s prudent business model, digitization of processes and team expertise has allowed them to successfully underwrite risk in difficult times,” he added.