Fintech Salmon gets $88-M fresh capital
Financial technology firm Salmon raised $88 million in fresh capital to help ramp up its consumer lending business.
In a statement on Tuesday, Salmon said the transaction consisted of a $60 million investment that was carved out of a three-year Nordic bond framework deal amounting to $150 million.
The remaining $28 million was in the form of new equity financing from “blue-chip US institutional investors” and global venture capital firm Antler.
The money will add to Salmon’s growing capital that already included investments from its existing funders, namely the International Finance Corp., sovereign wealth fund of Abu Dhabi ADQ/Lunate, Northstar, Back in Black Capital and some local investors.
It was the first-ever Nordic bond deal by a technology firm in Southeast Asia, Salmon said. Meanwhile, the equity capital infusion was led by Spice Expeditions LP, a venture capital firm focused on global fintech.
“With this new funding, we will expand our reach, introduce more innovative products and accelerate our vision of building the most customer-centric and innovative financial institutions in the Philippines,” the company said.
Salmon has a rural banking license, which allows it to operate the Rural Bank of Sta. Rosa.
The company uses artificial intelligence-enabled technology to enhance its credit scoring capabilities and a proprietary credit engine to offer consumer loans. Clients may borrow up to P100,000 through the “Salmon Credit” product.
Last year, Salmon announced its plan to apply for a thrift banking license by the end of 2025. To do that, the firm is eyeing to increase its capital to P2 billion.
The Bangko Sentral ng Pilipinas requires rural banks to maintain minimum capital levels of P20 million to P500 million depending on the number of branches. That said, Salmon’s goal is four times bigger than the maximum requirement for rural lenders.
To attract more customers, Salmon offers a competitive deposit rate of 8.88 percent per annum.
