DMI Finance, a provider of digital financial services in India, specialises in consumer finance and offers point-of-sale (POS) loans through various partnerships. MUFG has been actively investing in digital financial services across the Asia-Pacific region, driven by a trend towards using advanced technology to serve underbanked consumers and SMEs.
Recent investments include Ascend Money in June 2024 and Globe Fintech Innovations in August 2024. MUFG has also initiated the ‘MUFG Openly-connected Digital Ecosystem’ (MODE), aimed at supporting collaboration and knowledge sharing among its portfolio companies.
According to the company press release, India’s quick economic growth and increasing internet penetration are expected to support the development of digital financial services. MUFG has been supporting Indian startups through the MUFG Ganesha Fund, launched in March 2022, to enhance growth in this sector.
DMI Finance has developed a distinctive business model within India’s digital lending market, serving 15.2 million customers as of March 2024 according to the company press release. The company offers POS loans and cross-sell loans to creditworthy customers through its network of partners. MUFG’s initial investment in DMI Finance in April 2023 helped the firm expand its operations and solidify its market presence.
Given the progress of their collaboration, including business partnerships and the integration of MUFG’s financial solutions, MUFG has decided to increase its investment in DMI Finance. This move aims to stimulate growth in India’s digital financial services sector and strengthen MUFG's digital ecosystem. The additional investment is expected to enhance MUFG's regional platform, advance its MODE initiative, and contribute to financial inclusion in Asia.
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