DMI Finance Private Limited has closed a $400-million equity investment round led by Japanese player Mitsubishi UFJ Financial Group through its consolidated subsidiary MUFG Bank. Existing investors Sumitomo Mitsui Trust Bank Limited (SuMi TRUST Bank) also participated in the round, which included primary and secondary transactions.
New Delhi-based DMI Finance is a pure-play digital lender, which provides consumption, personal and MSME loans. It strives to use technology to optimise every step in the lending stack, from sales and underwriting to customer service and collections.
“For MUFG, Asia is a significantly important and second home market, and 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,” said Masashige Nakazono, Managing Director, Head of Global Commercial Banking Planning Division of MUFG Bank.
Founded in 2008, DMI Finance sources and services customers through multiple digital channels including Samsung, Google Pay and Airtel, which work with DMI Finance to provide diverse financial products to their customers across India.
The company says it 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. It is projected to disburse over $2.5 billion in FY24 across products.
“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… We feel that MUFG and SuMi TRUST Bank are the perfect investors for us,” said Yuvraja C Singh, Co-founder and Joint Managing Director of DMI Finance.
“We are confident that DMI’s digital financial services, which organically combine fintech and last-mile reach capabilities, will continue to contribute significantly to India’s growth, and that DMI itself will achieve further growth,” said Masaya Noda, Managing Executive Officer of SuMi TRUST Bank.
