India’s DMI Finance has raised $400 million in an equity investment round led by Japan’s largest lender Mitsubishi UFJ Financial Group (MUFG), through its subsidiary MUFG Bank.
The round, which included both primary and secondary transactions, was also participated by existing investor Sumitomo Mitsui Trust Bank (SMTB), the digital lender said in a statement.
Established in 2008, DMI Finance is a pure-play digital lender with products including consumption, personal and MSME loans. It sources and services customers through multiple digital channels.
It counts as its clients Samsung, Google Pay and Airtel. They work with DMI Finance to provide diverse financial products to their customers across India.
DMI Finance covers 95% of India’s pin codes and has an accessible customer base of 25 million, which is expected to grow to over 40 million in FY24. The company expects to disburse over $2.5 billion in FY24 across products.
In terms of digital infrastructure, India is currently in the midst of an unprecedented transformation.
“There is a large underserved population when it comes to financial services in India, and it is our goal to promote financial inclusion and support this market,” said Yuvraja C. Singh, co-founder and joint managing director at DMI Finance.
Meanwhile, Masashige Nakazono, managing director, head of the global commercial banking planning division of MUFG Bank added how Asia is significantly important for the lender. And within that, “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,” he said.