A $400 million equity investment round led by Mitsubishi UFJ Financial Group, Inc. through its consolidated subsidiary MUFG Bank, Ltd. has been completed, the digital lending company DMI Finance has announced. Existing investor Sumitomo Mitsui Trust Bank Limited also participated. Both primary and secondary transactions are part of this round.
The funding follows DMI Finance’s January 2022 acquisition of $47 million from SuMi TRUST Bank, NXC Corporation, and New Investment Solutions. The current round brings the non-banking financial company’s (NBFC) total funding raised to $900 million.
DMI Finance, a pure-play digital lender with products like consumption, personal, and MSME loans, was established in 2008 by Shivashish Chatterjee and Yuvraja C. Singh. It finds customers and provides customer service through a variety of digital channels. In particular, it is a preferred embedded digital finance partner for well-known companies like Samsung, Google Pay, and Airtel, which collaborate with DMI Finance to offer a range of financial products to their customers in India.
The Mumbai-based NBFC asserts that it covers 95% of India’s pin codes and has a customer base of 25 million who are accessible, adding that this number is anticipated to increase to more than 40 million in FY24.
SuMi TRUST Bank and MUFG Bank made a sizable investment in DMI Finance at a time when the startup ecosystem in India is currently experiencing a funding winter. In the first quarter of 2023, nearly 260 startups announced their funding, according to a media house’s quarterly funding report. Among them, 229 transactions totalling $3.4 billion were disclosed, while 31 startups withheld information about their transactions.
