Salmon secures USD $140 million to expand in Philippines

Salmon has secured USD $140 million in additional financing to expand its lending business in the Philippines and support the national rollout of new products, including motorcycle and micro, small and medium-sized enterprise (MSME) lending.

The financing comprises USD $90 million in commitments from existing investors Spice Expeditions, WashU and Moore, alongside USD $50 million raised through bond proceeds. The funds will support the expansion of Salmon's lending operations and the development of additional financial products.

The company operates in the Philippines through Salmon Bank, a rural bank licensed by the Bangko Sentral ng Pilipinas, and Salmon Finance, a financing company licensed by the Securities and Exchange Commission.

Founded in July 2022 by Pavel Fedorov, George Chesakov, and Raffy Montemayor, Salmon offers consumer lending products, including the Salmon Credit Line and in-store lending. The company said the latest financing would support the growth of its profitable lending business while broadening its product range.

Lending expansion

Salmon serves customers through its mobile application, which has recorded 9 million downloads and a 4.8 rating on Apple's App Store and Google Play, according to the company. It also reported 99.9% app uptime and round-the-clock customer support.

The company's lending operations use an automated credit engine to assess borrowers, including people with limited credit histories. Salmon said the system can deliver credit decisions within minutes.

The planned expansion into motorcycle and MSME lending will extend its product offering beyond existing consumer credit services. The company intends to use the additional capital to broaden access to banking and credit across the Philippines.

Salmon has identified the country as its initial market in a wider Southeast Asian strategy. It is developing a banking and lending platform in the region, with operations currently focused on the Philippines.

Investor backing

The latest financing builds on previous backing from investors including the International Finance Corporation, part of the World Bank Group, ADQ/Lunate, Antler and Filipino investors.

Salmon said its existing investors had supported the next stage of its development as it seeks to expand its customer base and introduce additional financial products.

"Everyday financial services come with unnecessary friction for many Filipinos. We're removing these barriers and building innovative products with the reliability and security customers expect in today's world," said Pavel Fedorov, Co-Founder, Salmon.

Fedorov said the company would continue to focus on the Philippine market as it expands its services.

"We are doubling down on the opportunity in the Philippines as we believe deeply in its scale and in the importance of focus to deliver a differentiated execution. This financing lets us do more: extend banking and credit access to more Filipinos, roll out new products, and keep raising the bar for the financial services industry in the country. We are grateful to our existing investors for backing the next stage of our mission," said Fedorov.

Salmon said it had built a customer base numbering in the millions in less than four years through its banking and financing businesses and consumer application in the Philippines.