MUFG’s consolidated subsidiary MUFG Bank (all the companies belonging to Mitsubishi UFJ Financial Group Inc.) today announced that it has decided to invest INR 19.1 Bn in DMI Finance Private Limited (DMI Finance), a fintech company providing digital financial services in India.
MUFG Bank leads this way DMI Finance’s US$ 400 Million equity investment round successfully closed today with participation of other investors already financing the Indian Fintech company including the also Japanese Mitsui Trust Bank Limited.
Masaya Noda (Managing Executive officer of SuMi TRUST Bank said:” We feel honoured to participate in this equity investment round and contribute to DMI’s growth as a ‘Strategic Investor’, following our initial investment that was also the first by a Japanese company in December 2021. We are confident that DMI’s digital financial services, which organically combine fintech and last – mile reach capabilities, will continue to contribute significantly to india’s growth, and that DMI itself will achieve further growth. We also look forward to creating business opportunities to collaborate with DMI as its business partner, and to growing together with DMI through India-related business”.
DMI Finance is a Non-Bank Financial Company (NBFC) with a focus on consumer digital lending in India, and is positioned as an important NBFC in the country’s financial system. The company has built a partnership model, providing fully digitalized personal loans and POS loans where the entire application and origination process is completed online within partners’ ecosystems.
95% of India’s pincodes, an accessible customer base of 25 million and growing
DMI Finance has established a unique business model within the Indian digital lending industry. The company has technical prowess in technology-led embedded finance solutions which are highly appreciated by its partners.
In fact, the Indian fintech company sources and services customers through multiple digital channels, in particular it is an embedded digital finance partner of choice for leading business, including Smsung, Google Pay and Airtel. All these partners provide a wide range of financial products to their customers across DMI Finance’s domestic market.
DMI Finance covers 95% of India’s pincodes and has an accessible customer base of 25 million, which is expected to grow to over 40 million by fiscal year 2024. The company is expected to disburse over US$2.5 Bn in 2024 across its range of products.
DMI Finance has as well an edge in providing services to underbanked/unbanked individuals receiving credit for the first time and had provided credit to a cumulative total of 11 million customers as of December 2022.
“Powered by world-leading digital infrastructure, India is in the midst of an unprecedented transformation. DMI Finance aims to be the trusted partner for Indian households and small businesses in addressing their rapidly growing financial needs.
We are delighted to welcome MUFG and SuMi TRUST Bank on this pioneering mission, on which we embarked in 2016, of providing credit in real time to our clients. We aregrateful to them for this display of confidence in the ability of our team to deliver superior results, both for our clients and our investors, ” Shivanish Chatterjee (Co-Founder and Joint Managing Director of DMI Finance) said on the successful round of investemnt closed by the Indian company today.
Established in 2008 and supported by a deeply experienced team accross more than 40 offices in India, the DMI Group is a pan-India financial services platform with core businesses in digital finance, housing finance and asset management. It has raised over US$1.5 Bn of equity investment and is supported by global institutional investors, strategic family offices and leading Indian and international banks.
An strategical investment for MUFG
MUFG considers Asia as its second home market and has been building a commercial banking platform in Southeast Asia.
Amid the recent trend of providing services to underbanked/unbanked customers through digital financial services, MUFG has been making strategic investments in digital financial services. India is a large market where rapid economic growth is expected, as well as development of digital financial services due to the spread of the Internet and various policies promoting digitalization.
Masashige Nakamoto (Managing Director, Head of Global Commercial Banking Planning Division of MUFG Bank underscored: “For MUFG, Asia is a significantly important and second home market, and India is one of our most expected growing markets with the rapid population growth and foundation of digital infrastructure, showing a strong trend and potential of expansion on digital financial services to the unbanked customers. We strongly believe that DMI Finance has been building up a robust and distinguished business model with external partnership based on the power of its cutting-edge technologies. We’re excited to support DMI Finance’s growth through our investment as a strtegic partner and to contribute to the financial inclusion in India. We are looking forward to accompanying DMI Finance’s promising voyage in the digital financial market”.
MUFG has been working to support the growth of Indian startups through the MUFG Ganesha Fund , which was launched in March 2022.
“We feel that the Indian financial market has huge potential for growth over the next decade (or two) and are fortunate to have the strategic investors that wedo, who share our values and long term vision. There is a large undeserved population when it comes to financial inclusion and support this market. It is very important to us that all stakeholders have a positive experience working with DMI, and this requires us and our investors tohave philosophical and strategic alignment. With their patience and deep experience in the financial markets, we feel that MUFG and SuMi TRUST Bank, are the perfect investors for us. We look forward to working together”, Yuvraja C. Singh (Co-Founder and Joint Managing Director of DMI Finance) explained.
