World Bank Group member International Finance Corporation (IFC) is considering a $7 million equity investment in Fintech Holdings Ltd, operator of consumer fintech startup Salmon in the Philippines.
In a disclosure, IFC said its proposed equity investment is part of Salmon’s fundraising round that will “enable the startup to scale its business” in the country.
Fintech Holdings is registered in the UAE and operates three Philippine subsidiaries under the brand name Salmon. The startup, which focuses on providing accessible and convenient financial services, leverages advanced technology and data-driven strategies to deliver a seamless user experience.
“The company’s primary goal is to enhance financial inclusion by offering a wide range of credit and deposit products, which will include cash loans, revolving credit lines, point-of-sale financing, credit cards, and debit cards,” IFC said in a disclosure posted on its website.
Salmon was founded in July 2022 by banking and fintech veterans Pavel Fedorov, George Chesakov, and Raffy Montemayor. Today, Salmon has more than 140 professionals in its Manila headquarters.
Its platform enables customers to access financial products from partners registered with the Securities and Exchange Commission (SEC) in the Philippines, including Sunprime Finance Inc. and FHL Financing Company.
IFC proposed investment comes about six months after Salmon announced that it secured a $20 million debt facility from US emerging-markets specialist investment firm Argentem Creek Partners. With the facility, Salmon earlier said it will expand its loan book and launch new disruptive products.
IFC anticipates that its proposed investment will help Salmon provide access to credit and deposit accounts to individuals underserved by incumbent financial institutions.
“The [proposed investment] will support Salmon’s efforts to grow its customer base, including by expanding and diversifying its customer acquisition channels, and also to support Salmon in expanding beyond its credit offerings and developing a deposit and transaction account product,” IFC added.
The international lender also expects the proposed investment to promote competitiveness by demonstrating the scalability of a credit-first, data-centric specialized business model capable of expanding the scope of bankable customers in the consumer finance space.
“This is expected to drive incumbent financial institutions and other digital lenders to compete on product and process innovation,” it said.
Aside from the proposed financial investment, IFC, which is a fintech investor in emerging markets with an extensive portfolio in consumer credit platforms, will also advise Salmon on strengthening its compliance and responsible lending policies.
“Additionally, IFC will support the company’s efforts to launch digital savings products and seek new licenses in the Philippines and other target markets,” IFC added.