DMI Finance Private Limited 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 included primary and secondary transactions.

DMI Finance is a digital lender with products including consumption, personal and micro, small and medium sized enterprises 
(MSME) loans. It aims to leverage technology to optimise every step in the lending stack, from sales and underwriting to customer service and collections. 

DMI Finance reportedly 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. 

DMI Finance claims that it covers 95 per cent of India's pin codes and has an accessible customer base of 25 million which is expected to grow to over 40 million in the fiscal year 2024 (FY24). It is projected to disburse over $2.5 billion in FY24 across products.

DMI Finance is AA-rated by Investment Information and Credit Rating Agency (ICRA) and supported by leading Indian and international banks.

“DMI Finance aims to be the trusted partner for Indian households and small businesses in addressing their rapidly growing financial needs. We are delighted to welcome MUFG and SuMi TRUST Bank on this pioneering mission, on which we embarked in 2016, of providing credit in real time to our clients. We are grateful to them for this display of confidence in the ability of our team to deliver superior results, both for our clients and our investors," said Shivashish Chatterjee, co-founder and joint managing director of DMI Finance.

“We feel that the Indian financial market has huge potential for growth over the next decade (or two) and are fortunate to have the strategic investors that we do, who share our values and long-term vision. 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. It is very important to us that all stakeholders have a positive experience working with DMI, and this requires us and our investors to have philosophical and strategic alignment,” added Yuvraja C. Singh, co-founder and joint managing director of DMI Finance.

“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. We strongly believe that DMI Finance has been building up a robust and distinguished business model with external partnership based on the power of its cutting-edge technologies,” observed Masashige Nakazono, managing director, head of global commercial banking planning division of MUFG Bank.

“We feel honoured to participate in this equity investment round and contribute to DMI’s growth as a “Strategic Investor”, following our initial investment which was also the first by a Japanese company in December 2021. 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,” added Masaya Noda, managing executive officer of SuMi TRUST Bank.