Digital lending company DMI Finance has announced the closure of a $400 million equity investment round led by Mitsubishi UFJ Financial Group, Inc. through its consolidated subsidiary MUFG Bank, Ltd, with participation from existing investor Sumitomo Mitsui Trust Bank Limited. This round includes primary and secondary transactions.
The investment comes after DMI Finance raised $47 million from SuMi TRUST Bank, NXC Corporation, and New Investment Solutions in January 2022. The current round takes the total funding raised by the non-banking financial company (NBFC) to $900 million.
Founded in 2008 by Shivashish Chatterjee and Yuvraja C Singh, 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 – in particular it is an embedded digital finance partner of choice for leading businesses including Samsung, Google Pay and Airtel which work with DMI Finance to provide diverse financial products to their customers across India.
The Mumbai-based NBFC claims to cover 95% of India’s pin codes and has an accessible customer base of 25 million, adding that its customer base is expected to grow to more than 40 million in FY24.
The mega investment from SuMi TRUST Bank and MUFG Bank into DMI Finance comes when India’s startup ecosystem is going through an ongoing funding winter. According to Entrackr’s quarterly funding report, nearly 260 startups have announced their funding during the Q1, 2023. Among them, 229 deals were disclosed amounting to $3.4 billion while 31 startups did not divulge their transaction details.