DMI Finance raises $334m in equity investment by MUFG Bank

By Gloria Mathias

Mitsubishi UFJ Financial Group, Inc. (MUFG) and its consolidated subsidiary, MUFG Bank, have announced that MUFG Bank will invest an additional $334 million (INR 27,988 million) in DMI Finance, a digital financial services business in India.

In the Asia-Pacific region, digital financial service providers are accelerating their use of technological developments to offer financial services to unbanked or underbanked consumers and SMEs. To capture growth in this area, MUFG has been continuously investing in the region’s digital start-ups and tech firms, including the recent investments in Ascend Money in June 2024 and Globe Fintech Innovations in August 2024.

India is a large market where rapid economic growth is expected. Due to the spread of the Internet and various policies promoting digitalization, the accelerated development of digital financial services is also foreseen.

DMI Finance is a digital financial services provider primarily engaged in consumer finance in India. Leveraging its 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 has established a unique business model in India’s digital lending industry and has provided its services to a cumulative total of 15.2 million customers (as of March 2024).

In April 2023, MUFG made a strategic investment in DMI Finance. The company has since expanded its business scale by building a robust track record in its consumer finance business through the partnership model and the cross-sell loans service. Furthermore, considering the progress of the collaboration between MUFG and DMI Finance (including business collaborations with MUFG group companies and portfolio companies, provision of MUFG’s financial solutions, and knowledge sharing of DMI Finance’s technological expertise), MUFG has decided to make an additional investment in the company.

Through this investment, MUFG will further strengthen its platform in Asia and enhance the value of its franchises over the medium to long term, as well as contribute to financial inclusion in the region.