Through its subsidiaries MUFG Innovation Partners Co. (MUIP) and MUFG Bank, Mitsubishi UFJ Financial Group (MUFG) has partnered with Indonesia-based Bank Danamon to form a US$100 million finance-focused fund.
According to rumors, the fund, dubbed “MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership,” would focus on series B firms with expertise in lending, payments, SaaS, ESG, wealth management, and embedded finance markets.
He also stated that during the following three to four years, the fund will invest between US $3 million and US $5 million in 15 to 20 businesses, depending on the macroeconomic environment. The check sizes will be up to US $1 million for smaller R&D transactions.
Danamon’s digitization initiatives and the development of new client acquisition channels are the fund’s main goals. The largest interest will be held by MUFG Bank (89.9%), then by Danamon (10%) and MUIP (0.1%).
One of the biggest financial firms in the world, MUFG is located in Japan and has more than 2100 locations in 50 countries and 160.000 employees.
After being purchased by MUFG in 2019, Danamon expanded to become Indonesia’s sixth-largest commercial bank, with 864 domestic branches.
In recent years, MUFG has expressed a larger interest in Indonesia. It most recently invested $200 million in the regional financial company Akulaku.