The local branch of Mitsubishi UFJ Financial Group (MUFG) has contributed US $100 million to the consumer finance company Home Credit Indonesia.
The money will be “fully used” by the business to finance ESG initiatives.
“This funding from MUFG will support the company’s mission to increase financial inclusion, while increasing digital inclusion, especially through smartphone and tablet financing,” Volker Giebitz, director of Home Credit Indonesia, said in a statement.
Originally, Home Credit Indonesia was a division of Home Credit, a consumer finance company with its headquarters in the Netherlands. For roughly US $621 million, MUFG announced last year that it would be purchasing Home Credit’s Indonesian and Philippine subsidiaries.
The Japanese financial services company, along with its subsidiaries Adira Dinamika Multi Finance and Krungsri, made the acquisitions. In October 2023, the agreement to purchase Home Credit Indonesia, of which MUFG would own 85%, was finalized.
Established in 2013, Home Credit’s services include point-of-sale loans, providing customers with financing options for their purchases at both physical and digital points of sale. The company said it has served over 6 million customers in Indonesia, partnering with companies like Samsung, Vivo, Tokopedia, Bukalapak, and Blibli.
Earlier this year, Home Credit Indonesia partnered with Superbank to provide working capital loans, primarily targeting underbanked individuals.
