Salmon secures USD $100 million for Philippines expansion

Salmon Group has raised USD $100 million in new financing for its Philippine operations, combining fresh equity with public bond funding.

The package includes USD $60 million in equity and USD $40 million from a public bond issue. The equity round was oversubscribed, while the bond sale was completed under the company's existing USD $150 million Nordic bond programme.

Salmon operates in the Philippines through Salmon Bank, a BSP-licensed bank, and Salmon Finance, an SEC-licensed financing company. Active for three years, it is building a consumer banking and lending business in a market where much of the population remains underbanked.

Spice Expeditions led the equity round. Other investors included Washington University Investment Management Company, Moore Strategic Ventures, FJ Labs and existing backers.

Salmon will use the equity proceeds to expand its product offering, extend its distribution network in the Philippines, add capital to Salmon Bank and increase overall balance sheet capacity. The bond proceeds are earmarked for the continued growth of its lending portfolio.

Two tranches

The bond issue raised USD $40 million at an effective yield of 13.7%. The notes were placed with fixed-income investors during a period of volatility in global capital markets.

By combining equity and debt, the group is broadening its funding base as it expands lending and banking services. For fintech and consumer finance companies, access to diverse sources of capital can support loan growth while preserving regulatory capital within banking units.

Salmon was founded in 2022 by Pavel Fedorov, George Chesakov and Raffy Montemayor. The group is building its business first in the Philippines before pursuing wider expansion across Southeast Asia.

Existing backers include IFC, part of the World Bank Group, ADQ/Lunate, Antler and Filipino investors. The latest round adds more US-based venture investors to its shareholder base.

Consumer market

Salmon is targeting the Philippine consumer finance market, shaped by low banking penetration and growing adoption of digital financial services. That has attracted both local and foreign fintech firms offering mobile banking, credit and payment products.

The company distributes its services through its mobile app and offers products such as credit and term deposits. According to Salmon, the app holds a 4.8 rating in both Apple's App Store and Google Play.

Commenting on the financing, the company cited customer growth, product expansion and the balance sheet needs of its bank and lending operations.

"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% uptime. 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% term deposit rates, and exciting new products will soon offer fantastic deals to our customers. We are proud to have some of the world's most respected investors joining us for this next chapter of growth. 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," said Pavel Fedorov, Co-founder of Salmon Group.

The latest financing gives Salmon new equity backing and additional debt capacity as it expands its consumer finance business in the Philippines.