SUMMARY
- MUFG Bank plans to increase its investments in India, targeting both large corporate clients and start-ups, with a current exposure of over $10 billion.
- Over the last five years, MUFG has invested $2.7 billion in more than 100 Indian start-ups, focusing on strategic technologies, particularly in the financial services sector.
- The bank recently committed $332 million to DMI Finance, reinforcing its focus on expanding its footprint in India’s fintech and start-up ecosystem.
MUFG Bank, Japan’s largest bank, aims to accelerate its investment activities in India, where it currently has an exposure of over $10 billion. This exposure spans across its large corporate banking segment as well as its strategic investments in Indian start-ups. Over the past five years, MUFG has invested approximately $2.7 billion in more than 100 start-ups, highlighting its commitment to the Indian market. This was confirmed by Masakazu Osawa, Managing Executive Officer and Chief Executive for Asia Pacific, at a global fintech conference.
One of MUFG’s most notable investments in India is in KreditBee, a Bengaluru-based lending tech start-up. Osawa emphasized that MUFG positions itself as a strategic investor, focusing not only on financial returns but also on the technology that start-ups bring, particularly those related to financial services. These technologies could potentially be integrated within the bank’s operations. “We are always looking for start-ups whose technologies and ideas can be directly applied to our products and services,” Osawa stated, underlining the bank’s interest in synergistic growth.
In addition to its focus on large corporate business in India, MUFG also actively engages in transaction banking activities such as deposit-taking, trade finance, issuance of letters of credit, and forex platforms. The bank seeks to identify start-ups with innovative technological solutions that could be embedded in its existing offerings.
MUFG’s investment activities in India have been channelled through its MUFG Ganesha Fund, launched in 2022. The bank recently announced a $332 million investment in DMI Finance, an Indian non-banking financial company (NBFC), following an earlier investment of $230 million in 2023. The bank was also one of the lenders involved in UltraTech’s recent $500 million sustainability-linked financing.
When asked about reports regarding potential investment in YES Bank, Osawa declined to comment, indicating that the bank’s investment strategy is driven by opportunities that align closely with its strategic objectives.
