Japan’s MUFG invests $334 million more in DMI Finance

Mitsubishi UFJ Financial Group (MUFG) has invested an additional $334 million, or ₹2,798 crore, in DMI Finance Pvt. Ltd, the Japanese banking giant said.

MUFG made the investment through its consolidated arm, MUFG Bank, bringing its overall investment in DMI Finance to about $565 million, or ₹4,712 crore. The Japanese bank had invested $400 million in the company last April.

DMI Finance is a digital financial services provider primarily engaged in consumer finance in India. Leveraging its cutting-edge technology, the company offers POS loans to customers through partnerships with various external parties. In addition, DMI Finance provides cross-sell loans to customers with a certain level of creditworthiness, which are also made possible through its partnerships.

The company provided its services to a cumulative total of 15.2 million customers as of March, a statement from MUFG said, adding that the lender disbursed $2.25 billion in FY24.

Big brands such as Samsung, Google Pay, and Airtel are associated with DMI Finance to provide diverse financial products.

Shivashish Chatterjee, co-founder of DMI Group, said, “We are gratified that MUFG has forcefully reiterated its confidence in DMI’s vision for MSME and consumer finance in India.”

“Long-term support by high-quality global investors is an essential ingredient of any successful financial services business. We are delighted for MUFG’s continued vote of support,” Yuvraja C. Singh, co-founder of DMI Group, said.

Masakazu Osawa, MUFG Bank’s managing executive officer and chief executive for Asia Pacific, said, “We are delighted to announce our additional investment in DMI Finance, a significant step that showcases our commitment to the company and the Indian market.”

Osawa added that since the first investment in April 2023, “it has been proving its ability to expand its consumer finance business; we have been developing a robust collaboration agenda from various angles, which includes business collaborations with MUFG group companies and portfolio companies, provision of MUFG’s financial solutions, and knowledge sharing.”

“Through the additional strategic investment in DMI, we aim to further capture the growth of the digital finance market in India, deepen collaboration with MUFG, and contribute to financial inclusion in the country by supporting DMI’s growth,” he added.