Japanese banking giant Mitsubishi UFG Financial Group (MUFG) has invested Rs 2798 crore ($334 million) in Delhi based digital lending company DMI Finance Pvt Ltd in yet another example of increasing appetite from Asia’s second largest economy in India’s financial sector.
The investment was made through its consolidated subsidiary MUFG Bank and brings the total investment by MUFG in DMI Finance to Rs 4712 crores (approximately $565 million) adding to the $400 millon that MUFG invested in the company last April.
Delhi based DMI Finance is a digital led NBFC that offers loans to individuals and micro and small enterprises. The company has disbursed more than Rs 18,000 crore of loans last fiscal ended March 2024.
DMI Finance sources and services customers through multiple digital channels including Samsung, Google Pay and Airtel. It has a customer base of 2.05 crore.
MUFG did not share how much its total stake on DMI had risen to after this latest investment.
“Since our first investment in April 2023, the company has been proving its ability to expand its consumer finance business and 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,” said Masakazu Osawa, chief executive for Asia Pacific of MUFG Bank.
MUFG said it aims to further capture the growth of the digital finance market in India, deepen collaboration with MUFG as well as contribute to financial inclusion in the country by supporting DMI’s growth.
Shivashish Chatterjee, co-founder of the DMI Group said the company is gratified that MUFG has reiterated its confidence in DMI’s vision for MSME and Consumer finance in India.
DMI Group is a financial services platform with core businesses in digital finance, housing finance and asset management. It has raised over $1.5 billion in investment capital and is supported by global institutional investors, strategic family offices and leading Indian and international banks.
Last April, MUFG joined its Japanese peer Sumitomo Mitsui Trust Bank Ltd another investors in taking a stake in the fast growing company.
