UnoAsia nets $32.1m, eyes profitability in 2024

Uno Digital Bank CEO Manish Bhai / Photo credit: Uno Digital Bank

Singapore-based UnoAsia, the parent company of Uno Digital Bank in the Philippines, has raised US$32.1 million in a pre-series B round.

The fundraise, which was a mix of debt and equity, saw participation from Gateway Partners, Creador Private Equity, and Nextinfinity Management. Overall, UnoAsia has raised nearly US$75 million so far.

With its latest raise now completed, Uno Digital Bank has made profitability its priority for 2024, its CEO Manish Bhai told Tech in Asia.

The company said that it will continue to scale up its current product line while adding more offerings in the coming months.

Profitability at the forefront

UnoAsia was founded by Bhai and Kalidas Ghose in 2020, but Uno Digital Bank only became commercially operational about 15 months ago. Uno Digital Bank currently offers services such as savings, transactions, investment products, and insurance.

To fuel its growth, the company aims to meet the needs of the Philippines’ growing bankable population, which is expected to hit 85 million by 2030, a 30% increase from 2022.

Part of these efforts is its rollout of consumer durable loans, which are personal loans for retail and ecommerce purchases. The bank plans to launch the product within the next month or two.

Uno Digital Bank introduced personal loans in the last quarter of 2023, but Bhai said the segment has already seen a strong uptick. Loans currently account for most of the company’s revenue.

“On a steady stage, we expect 60 to 70% of revenue to come from loans and the rest to come from payments and insurance,” the CEO added.

The bank is currently operating at a single-digit non-performing loan (NPL) ratio. For perspective, BDO Unibank, one of the largest banks in the Philippines in terms of assets and one of the oldest in Southeast Asia, had an NPL ratio of 2.8% in 2021.

Uno Digital Bank also plans to add life, health, and other general insurance products to its offerings in the coming months.

Eyeing MSMEs

The bank said that it currently has 1 million customers, who account for US$100 million in deposits. It expects to more than double its user base by the end of 2024.

As part of its growth efforts, Uno Digital Bank is aiming to introduce new products tailored to MSMEs in the latter half of the year. Currently, MSMEs make up only 10% of the company’s user base, with the rest being retail consumers.