The Philippines, with millions of unbanked adults, is seeing its consumer lending market grow. Manila-based consumer finance app Salmon has secured $60 million in equity and $40 million in debt to introduce digital banking to Filipinos.
Founded by former Tinkoff employees Pavel Fedorov, George Chesakov, and Raffy Montemayor, Salmon aims to capitalize on the innovative potential of Southeast Asia. Montemayor previously led Tinkoff’s expansion in the Philippines since 2016 until he, Fedorov, and Chesakov launched Salmon in March 2022.
As one of the most active mobile markets globally, the Philippines boasts a tech-savvy population but has struggled with financial system advancements. Salmon targets underbanked Filipinos with minimal credit history or dissatisfaction with current lenders’ reliability issues.
In January 2024, Salmon streamlined its establishment by acquiring a rural bank obtaining its banking license. The startup is developing a complete range of financial products, including credit lines, installment loans, cash loans, motorbike loans, and deposits.
Fedorov emphasized the importance of addressing lending challenges first, followed by additional product development. Salmon has introduced around seven or eight offerings, utilizing a digital approach that traditional banks in the Philippines can’t match given existing credit market infrastructure.
Salmon is revolutionizing the loan process, offering quick decisions and simplifying paperwork. Customers complete forms on their phones, submit documents, and receive decisions in 20 seconds, facilitating rapid access to finance.
Salmon’s credit product provides up to a 62-day grace period, allowing interest-free borrowing for punctual repayments. Its Salmon Bank subsidiary offers term deposits with up to 8% interest.
With new funding, Salmon plans to scale its operations and develop new products, with potential international expansion in two years. The dual financing round is strategic, as equity funds operations and growth while debt finances customer loans. The company utilized the Nordic bond market for debt financing.
To date, Salmon has raised $310 million, comprising $160 million in equity and $150 million through bonds. Investors in this round include Spice Expeditions, Washington University Investment Management Company, Moore Strategic Ventures, and FJ Labs, with previous support from IFC, ADQ, Lunate, and Antler VC.