Salmon completes $30-million funding round

SALMON Group Ltd. has completed its $30-million Series A-2 equity financing round, which will help fund its lending business and the launch of new products in the Philippines, it said on Thursday.

“Salmon’s mission has always been to drive financial inclusion, and the Philippines is one of the most exciting markets globally for unlocking access to credit. With this latest investment round, we are positioned to scale our operations even further, bring new products to market, and deepen our partnerships across the financial ecosystem,” Salmon Co-Founder Pavel Fedorov said in a statement on Thursday.

“The recent success of the Rural Bank of Sta. Rosa (Laguna), Inc., with its exceptional growth and market-leading return on equity, is a testament to the potential of combining innovation with a strong commitment to local communities,” Mr. Fedorov added.

Part of the proceeds will help raise the capital of Rural Bank of Sta. Rosa (Laguna) to P1.2 billion by end-2025, subject to regulatory approvals, Salmon said.

Some will also go to marketing in retail locations in the country and the expansion of its online offerings.

Salmon’s latest equity funding round saw participation from the International Finance Corp. (IFC) and Lunate of Abu Dhabi, with both committing amounts in excess of their pro-rata allocation rights, it said.

“This new investment round underscores the confidence that global institutional investors have in Salmon’s ability to continue delivering transformative financial solutions in the Philippines and beyond,” Salmon said.

As of end-May, the Rural Bank of Sta. Rosa (Laguna) saw its revenues surge by 432% year on year to P66 million.

The bank’s loans also jumped by 648% to P400 million in the period from P54 million last year.

On the funding side, deposits soared by 439% to P440 million from P82 million.

The rural lender’s equity climbed by 1,075% year on year to P385 million in June following a capital injection from Salmon.

Salmon received its banking license from the Bangko Sentral ng Pilipinas through its acquisition of a 59.7% controlling stake in Rural Bank of Sta. Rosa (Laguna) in January. — AMCS