UnoAsia Secures $32.1 Million, Aims for Profitability in 2024

UnoAsia, the parent company of Uno Digital Bank based in Singapore, has recently completed a pre-series B funding round, raising a substantial sum of US$32.1 million. This funding round, which consisted of a combination of debt and equity, saw participation from prominent investors such as Gateway Partners, Creador Private Equity, and Nextinfinity Management. With this latest round, UnoAsia has now amassed close to US$75 million in total funding. Manish Bhai, CEO of Uno Digital Bank, emphasized that profitability is the primary focus for the bank in 2024 following the successful fundraising. Uno Digital Bank, operational for approximately 15 months, aims to prioritize profitability while expanding its product offerings and scaling up existing services. UnoAsia, founded by Bhai along with Puneet Gupta and Kalidas Ghose in 2020, has positioned Uno Digital Bank as a leading player in the digital banking space. The bank currently provides a range of financial services including savings, transactions, investment products, and insurance. To support its growth trajectory, Uno Digital Bank is keen on addressing the evolving needs of the Philippines' bankable population, projected to reach 85 million by 2030, marking a significant 30% increase from 2022. As part of this strategy, the bank plans to introduce consumer durable loans, catering to retail and ecommerce purchases, within the next few months. The introduction of personal loans towards the end of 2023 has already shown promising results, with loans emerging as a primary revenue driver for the bank. Bhai anticipates that loans will contribute between 60 to 70% of the bank's revenue, with payments and insurance comprising the remainder. Currently, Uno Digital Bank boasts a single-digit non-performing loan (NPL) ratio, underscoring its sound credit quality. In comparison, BDO Unibank, one of the largest banks in the Philippines, reported an NPL ratio of 2.8% in 2021. Looking ahead, Uno Digital Bank plans to diversify its product portfolio by introducing life, health, and other general insurance products. With a customer base of 1 million and deposits totaling US$100 million, the bank aims to more than double its user base by the end of 2024. In a bid to further expand its market reach, Uno Digital Bank intends to launch products tailored to Micro, Small, and Medium Enterprises (MSMEs) in the latter half of the year. Currently, MSMEs constitute a small portion, accounting for only 10% of the bank's user base. However, Bhai envisions a more balanced ratio between individual customers and MSMEs, aiming for a split of 60 to 40 within the next two to three years. Uno Digital Bank's strategic focus on catering to Micro, Small, and Medium Enterprises (MSMEs) in the Philippines is well-aligned with broader economic trends and growth opportunities in the region. MSMEs play a pivotal role in driving economic development and employment generation in the Philippines. In 2020, MSMEs contributed approximately 40% to the country's Gross Domestic Product (GDP), highlighting their significant impact on the overall economy. Additionally, MSMEs accounted for a substantial 63% of total employment in the same year, underscoring their role as major employers and engines of job creation. Given the vital contribution of MSMEs to the Philippine economy, Uno Digital Bank's focus on this segment reflects a strategic approach to tap into a key growth driver. By offering tailored financial products and services specifically designed to meet the needs of MSMEs, the bank aims to support their growth and expansion initiatives. As MSMEs continue to play a pivotal role in driving economic growth, Uno Digital Bank's emphasis on serving this segment positions it well to capitalize on the burgeoning opportunities in the Philippine market. By providing accessible and innovative financial solutions to MSMEs, the bank not only contributes to their success but also strengthens its own position as a leading player in the digital banking sector.