Salmon Raises $88 Million to Boost Manila Fintech Business

Salmon Group Ltd., a rising leader in financial technology and financial inclusion in the Southeast Asian region, announced that it has raised $88 million (about P5 billion) in combined funding to drive the Philippine fintech industry.

The deal consisted of a $60 million drawdown that stemmed from a three year $150 million Nordic bond framework agreement and $28 million in new equity raised from blue-chip Antler Elevate institutional investors from the United States, and existing shareholders of Salmon.

“Salmon is on a mission to revolutionize banking in Southeast Asia,” Salmon co-founder Pavel Federov said in a statement. “For too long, the legacy banks in the region have provided sub-standard products, service, and customer experience, and the Philippines is a case in point.”

ALSO READ:

Fintech Startup Salmon Gains Banking License After Buying Controlling Stake in a Rural Bank

Frozen Accounts, Delays in Salary Disbursement: What's Happening with Salarium?

Spice Expeditions, LP,a venture capital firm who engages with global financial tech firms, led the equity round. “The bond transaction marks the first-ever Nordic bond issuance by a technology firm out of Southeast Asia,” the fintech player said.

Salmon offers an 8.88 percent deposit rate at their Bangko Sentral ng Pilipinas-regulated and partnered bank, which is the highest in the country. It launched the time deposit program last year, which the fintech player says offers one of the most appealing rates in the country.

It also operates the BSP-regulated Rural Bank of Sta. Rosa and financing company Sunprime Finance, Inc., which is licensed by the Securities and Exchange Commission.

The firm says it aims to position itself as the top credit-led, technology centric bank in Southeast Asia, with the Philippines as its new market.

“The list of existing investors includes the International Finance Corporation, the sovereign wealth fund of Abu Dhabi ADQ/Lunate, Northstar, Back in Black Capital, and prominent Filipino investors,” according to Salmon.

How Salmon Got Set Up

The local fintech firm was founded in 2022 by banking and technology veterans Federov, George Chesakov, and Raffy Montemayor, who aimed to expand financial inclusion through new tech such as artificial intelligence among other data-driven banking solutions.

The fintech player is also backed by Abu Dhabi’s sovereign wealth fund ADQ.

In November last year, the group was recognized as the Leading Fintech Group Philippines at the esteemed World Business Outlook Awards 2024.