DMI Finance Pvt Ltd, the non-banking lending arm of the DMI Group, has raised Rs 2,798 crore (approximately $333 million) in equity investment from Mitsubishi UFJ Financial Group, Inc., via its consolidated subsidiary MUFG Bank.
The latest fundraising brings MUFG's total investment in DMI Finance, which offers products such as consumption, personal and MSME Loans, to Rs 4,712 crores (approximately $561.3 million).
DMI Finance claims that it sources and services customers through multiple digital channels. In particular, it is an embedded digital finance partner for several businesses such as Samsung, Google Pay and Airtel. These platforms have tie-ups with DMI Finance for providing financial products to their customers in India.
The company claims that it has an accessible customer base of 25 million. In the financial year through March 2024, the company disbursed loans worth $2.25 billion.
"Since our first investment in April 2023, the company has been proving its ability to expand its consumer finance business, and we have been developing a robust collaboration agenda from various angles, which includes business collaborations with MUFG group companies and portfolio companies, provision of MUFG's financial solutions, and knowledge sharing,” said Masakazu Osawa, managing executive officer, chief executive for Asia Pacific of MUFG Bank.
Founded in 2008 by former Citigroup executives Shivashish Chatterjee and Yuvraj C Singh, New Delhi-based DMI Finance has over a decade of experience.
MUFG Bank had also led a $400 million equity investment round in DMI Finance in primary and secondary transactions in April last year. The round also saw participation from existing investor Sumitomo Mitsui Trust Bank Ltd.
