MUFG Bank, the core banking subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), announced Thursday that it plans to invest $300 million in Indian startups through the new MUFG Ganesha Fund.

Through this fund, MUFG Bank will invest in middle- to late-stage Indian startups, the bank said in a statement.

It also said in the future, the bank will aim to leverage its group strengths to provide a wide range of financial services to its portfolio companies.

It said that India, aided by strong economic growth, has seen an increase in the number of startups leveraging digital technology, given the rise of young digital natives in the country, the rapid spread of the Internet, and the promotion of governmental policies that support digitalization.

Many of these startups are using technology to solve social issues, such as FinTech companies that support unbanked segments within the country who were previously unable to receive financial services as well as companies specializing in the environmental sustainability and renewables sectors, it added.

It also said since positioning the capture of Asian growth, responding to the digital shift, and contributing to environmental and social issues are priority strategies, MUFG has pursued initiatives in the region, such as building a business platform through investments in partner banks and supporting startups via Mars Growth Capital.

“We will further contribute to the development of new industries and the sustainable development of local communities by financially supporting the growth of startups in India. Through the fund, MUFG will also drive collaboration with promising companies in the areas of tech and information technology (IT), and explore new business opportunities,” it said.

MUFG is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, it has a global network with approximately 2,500 locations in more than 50 countries. It has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. Its shares traded on the Tokyo, Nagoya, and New York stock exchanges.

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