The move will make WealthNavi a wholly owned subsidiary of MUFG, and MUFG will initiate a tender offer of JPY 1,950 per share. At the time of writing, MUFG owns more than 15% of WealthNavi, which manages over JPY 1 trillion in assets, making it Japan's largest robo-advisory platform according to Reuters. WealthNavi provides automated investment services, catering to a growing demand for accessible wealth management solutions.
The acquisition aligns with wider efforts in Japan to encourage investment over traditional savings. The government has expanded its tax-free NISA program to promote market participation and reduce reliance on public pensions.
MUFG initially acquired a stake in WealthNavi in February 2024, reflecting a wider trend of financial institutions partnering with fintech firms to enhance digital services. The full acquisition is in line with MUFG’s commitment to strengthen its position in Japan’s digital asset management market.
In a parallel development from August 2024, MUFG announced an additional investment of JPY 49.0 billion in DMI Finance Private Limited. 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.
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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now