Salmon Raises $60 Million in Equity and $40 Million in Debt for Philippines Expansion

Manila-based consumer finance app Salmon raised $60 million in equity and $40 million in debt, bringing its total funding to $310 million, with $160 million in equity and $150 million through bonds. Investors in the recent round include Spice Expeditions, Washington University Investment Management Company (WUIMC), Moore Strategic Ventures and FJ Labs, according to @techcrunch.

Previous backers include IFC, ADQ, Lunate and Antler VC.

Pavel Fedorov, a co-founder, stated that the dual financing structure is by design, with equity to fund operations and growth, and debt to finance loans extended to customers. For its debt financing, Salmon turned to the Nordic bond market. With the new capital, Salmon will prioritize scaling its business and building new products, Fedorov said.

He added that Salmon has raised $310 million to date, of which $160 million was in equity and $150 million through bonds. Salmon was founded by Pavel Fedorov, George Chesakov and Raffy Montemayor, all of whom previously worked at Russian digital bank Tinkoff. Montemayor was Tinkoff’s first employee in the Philippines and led its expansion in the country since 2016.

In March 2022, Fedorov, Chesakov and Montemayor parted ways with Tinkoff and launched Salmon. ' The Philippines is one of the most active mobile markets in the world and is often cited as the social media capital of the world. In January 2024, Salmon acquired a rural bank established in 1963 to secure its banking license.

The company is building a full suite of financial products, including revolving credit lines, installment loans, cash loans, motorbike loans and deposits. Fedorov said, 'We started by solving the hard things first, lending, and then followed up with many other products.