Indian fintech firm DMI Finance Private Limited has on Tuesday announced the closure of a $400 million equity investment round led by Mitsubishi UFJ Financial Group, Inc. through its consolidated subsidiary MUFG Bank, Ltd (MUFG).

The round also saw the participation from existing investor Sumitomo Mitsui Trust Bank Limited (SuMi TRUST Bank), DMI Finance said in a statement.

“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,” said Shivashish Chatterjee, Co-Founder and Joint Managing Director of DMI Finance.

Yuvraja C. Singh, Co-Founder and Joint Managing Director of DMI Finance, said that the Indian financial market has huge potential for growth over the next decade (or two).

According to him, there is a large underserved population when it comes to financial services in India, and it is the firm’s goal to promote 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 to have philosophical and strategic alignment,” he added.

In a separate statement, MUFG said it has decided to invest $232 million in DMI Finance as it sees growth potential in India.

Amid the recent trend of providing services to underbanked/unbanked customers through digital financial services, it said MUFG has been making strategic investments in digital financial services.

According to MUFG, 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.

It said MUFG has been working to support the growth of Indian startups through the MUFG Ganesha Fund, which was launched in March 2022.

Through strategic investments in digital financial services, it said MUFG continues to support the growth of its portfolio companies, contribute to financial inclusion in Asia, and aims to capture the growth of digital finance.

“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,” said Masashige Nakazono, Managing Director, Head of Global Commercial Banking Planning Division of MUFG Bank.

He strongly believes 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.

Masaya Noda, Managing Executive Officer of SuMi TRUST Bank said he is 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,” he added.

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.

DMI Finance’s technical prowess in technology-led embedded finance solutions are highly appreciated by its partners and it has established a unique business model within the Indian digital lending industry.

The company also has 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.

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