Mitsubishi UFJ Financial Group, Inc. (MUFG) and its consolidated subsidiary, MUFG Bank, Ltd., announced a significant additional investment of INR 27,988 million (approximately $339 million) in DMI Finance Private Limited, a digital financial services provider based in India.
This investment is part of MUFG’s ongoing strategy to deepen its footprint in the Asia-Pacific region, which the group considers its second home market.
DMI Finance, which has established itself as a key player in India’s burgeoning digital financial services sector, specializes in consumer finance.
The company primarily offers point-of-sale (POS) loans through partnerships with various external parties, alongside cross-sell loans to customers with established creditworthiness.
Leveraging cutting-edge technology, DMI Finance has built a unique business model within India’s digital lending industry, serving a cumulative total of 15.2 million customers as of March 2024.
MUFG’s investment in DMI Finance is the latest in a series of strategic moves aimed at capitalizing on the rapid growth of digital financial services in Asia.
The group has been actively investing in leading digital startups and technology firms across the region. Recent investments include stakes in Ascend Money in June 2024 and Globe Fintech Innovations in August 2024.
These investments are aligned with MUFG’s broader objective of fostering innovation and financial inclusion across Asia.
The additional investment in DMI Finance follows MUFG’s initial strategic investment in April 2023, which has already resulted in significant business expansion for the Indian company.
The partnership between MUFG and DMI Finance has enabled the development of a robust consumer finance business, supported by MUFG’s financial solutions, business collaborations with other MUFG group companies, and knowledge sharing of technological expertise.
India, with its rapidly expanding economy and accelerating digitalization, represents a strategic market for MUFG.
The spread of the internet and supportive government policies have created a fertile ground for the growth of digital financial services, making India a key focus for MUFG’s growth ambitions.
Through the MUFG Ganesha Fund, launched in March 2022, the group has been actively supporting the growth of Indian startups, further cementing its commitment to the region.
This latest investment also aims to strengthen MUFG’s “MUFG Openly-connected Digital Ecosystem” (MODE), an initiative designed to create a digital ecosystem for knowledge sharing and collaborative value creation among MUFG’s portfolio companies.
By deepening its relationship with DMI Finance, MUFG expects to enhance the depth of its MODE initiative and explore additional opportunities for business collaboration within the group.
Through this investment, MUFG aims to solidify its platform in Asia, contributing to financial inclusion and enhancing the value of its franchises over the medium to long term.