Salmon Group Ltd

Salmon Group Ltd

Industry	Financial technology
Founded	July 2022 (2022-07)
Founder	Pavel Fedorov George Chesakov Raffy Montemayor
Headquarters	Metro Manila, Philippines
Website	salmon.group

Salmon Group Ltd, known to customers as “Salmon,” is a financial technology company and a platform-as-a-service (PaaS) startup registered with the Securities and Exchange Commission (SEC). Salmon is headquartered in Metro Manila, Philippines working to improve access to credit, savings, and investments for over 500 million underserved customers in Southeast Asia, of which more than 51 million are Filipinos according to the 2019 Financial Inclusion Survey conducted by the Bangko Sentral ng Pilipinas.

The Salmon Group consists of four subsidiaries in the Philippines, including Sunprime Finance Inc., Salmon Services Inc., FHL Financing Company, Inc., and licensed bank Rural Bank of Sta. Rosa (Laguna), Inc (regulated by the BSP).

History

Salmon was established in July 2022 by former Co-CEO of Tinkoff, Pavel Fedorov, employee number one at Tinkoff, George Chesakov, and former General Manager of OLX and Agoda in the Philippines, Raffy Montemayor. Together, the three have over 60 years of combined experience in the banking and tech industry.

In October 2022, the company secured $16 million in its Series A funding round which jumpstarted Salmon’s first-ever financial product, its point-of-sale (POS) product loan. By now the company has more than 35 major merchant partners like SM Department Store, Robinsons Department Store, Home Along, National Bookstore, Vans, and others and can be found at over 2,000 stores nationwide. Salmon also offers cash loans to its customers and revolving credit line, named Salmon Credit. In addition, the Company announced its plans to launch a lifestyle banking product in the coming quarters.

In early 2023, Sunprime Finance Inc., a subsidiary of the Salmon Group, earned an Online Lending Platform (OLP) license from the SEC, allowing it to originate loans digitally and launch the Salmon App. It is also the same subsidiary that manages all Salmon Credit or revolving credit line loans since the launch of Salmon Credit in September 2023.

In 2023 Salmon obtained $20 million in debt financing from U.S. private credit fund Argentem Creek Partners. This marked the largest ever debt funding round for a Series A tech company in the Philippines. Later in 2023 Salmon launched the revolving credit line product (“Salmon Credit”) with built-in QR Ph payment options.

Salmon has partnered with Oradian, the first cloud native core banking system to be used by BSP-regulated financial institutions in the Philippines, enabling enhanced growth and performance with its cloud-native, API-enabled platform, to drive its growth strategy.

In January 2024, Salmon received its bank license from the BSP (Bangko Sentral ng Pilipinas) after the Philippine central bank approved its purchase of a 59.7% controlling interest in the Rural Bank of Sta. Rosa (Laguna), which has been successfully serving customers since 1963.

Following the receipt of the BSP approval, Salmon launched Salmon Time Deposit Accounts, offering the best savings rates in the Philippines at 8.88% interest for a 12-month time deposit for deposits in excess of PHP500,000.

In Q4 2023, Salmon announces its completion of a $25 million Series A-1 round, led by International Finance Committee (IFC), part of the World Bank Group. This investment represented one of IFC's largest ever investments in an early-stage company. In total, Salmon raised over $60 million in funding in just under two years—positioning Salmon as one of Southeast Asia’s fastest-growing fintech companies.

The capital gained from Series A-1 funding round will also enable Salmon to develop new debit and credit products and a lifestyle banking offering, which Salmon plans to launch in the second half of 2024.

Products

1. Salmon Financing

Salmon Financing is a point-of-sale (POS) loan product launched in November 2022, designed to provide convenient and accessible financing in-store solutions to consumers in the Philippines. Developed with the aim of empowering shoppers to make purchases without financial constraints, Salmon Financing offers a seamless and flexible borrowing experience directly at the point of sale.

ZeHelmet, a motorbike helmet store based in Bulacan, was the first retail partner to collaborate with Salmon Financing, facilitating the integration of the POS loan service into its stores. Since then, Salmon has expanded its network of retail partners, and it can now be found in more than 2,000 stores nationwide. Salmon Financing is readily available in Luzon, Visayas, and Mindanao, ensuring accessibility to borrowers regardless of their location within the Philippines.

2. Salmon Credit

Launched in September 2023, Salmon Credit is a revolving credit line that allows customers to flexibly borrow money as needed up to a certain credit limit. It gives customers the flexibility to make payments at over 600,000 QR.Ph-enabled merchant locations nationwide.

3. Salmon Cash Loan

Salmon Cash Loan is a personal loan product designed to provide borrowers with financial flexibility, allowing them to use the funds for any personal needs or desires without specific usage restrictions. The loan amount can be transferred to any bank supporting InstaPay or to e-wallets such as GCash.

4. Salmon Time Deposit Accounts

Rural Bank of Sta. Rosa (Laguna), Inc. powered by Salmon, offers customers time deposit savings with an interest rate of up to 8.88% for a 12-month period for deposits of more than PHP 500,000.00, which is the market-leading rate in the Philippines. Deposit rates for other terms and amounts could be found on the bank’s website.

Recognition

1. NPC Seal

In early 2024, Salmon and its subsidiaries, FHL Financing Company, Inc., Sunprime Finance Inc., and Rural Bank of Sta. Rosa (Laguna), Inc. have obtained their respective National Privacy Commission (NPC) Seals of Registration. This recognition confirms Salmon's adherence to the highest standards of data privacy and protection as mandated by the National Privacy Commission of the Philippines.

2. ABF Awards

Salmon Group Ltd received the Fintech Start-Up Award - Philippines at the Asian Banking and Finance (ABF) Fintech Awards 2024. Asian Banking and Finance (ABF) is a leading publication that provides comprehensive coverage of the financial sector across Asia and is known for its authoritative reporting and analysis. ABF hosts annual awards to recognize outstanding achievements and innovations within the financial industry and the Fintech Awards celebrate excellence in financial technology, highlighting companies and individuals driving the future of finance in the region.

Salmon's award was judged by panelist Alessandro Magarini Montenero, Partner for Financial Services at Bain and Company; Ho Kok Young, Audit and Assurance Partner at Deloitte Singapore and CFO Program Leader of Deloitte Southeast Asia; Liew Nam Soon, Regional Managing Partner of EY Asean; and Mansi Singh, Financial Services Strategy and Operations Partner at PwC Southeast Asia Consulting and is set to be awarded and announced to the public at Marina Bay Sands Expo and Convention Centre on July 4, 2024. This recognition further underscores Salmon's significant impact and innovation within the fintech industry.