Funding · Financial Services
MUFG invests ₹2,798 crore in DMI Finance
By Startup Enthusiast ·
- Date
- Company
- DMI Finance
- What it does
- Digital NBFC offering personal and MSME loans
- Kind
- Funding
- Amount
- ₹2,798 crore
- Stage
- growth
- Founded
- 2008
- Sector
- Financial Services
What they do
DMI Finance is a digital non-bank lender that provides personal, consumption and MSME loans
What happened
MUFG Bank invested ₹2,798 crore (~$334M) in DMI Finance at a valuation of about $3 billion
Why it matters
MUFG, which had earlier invested $400M, becomes the second-largest shareholder in the company
The details
- MUFG Bank invested an additional ₹2,798 crore (~$334M) in DMI Finance.
- The investment values DMI Finance at about $3 billion.
- MUFG's total investment in DMI Finance now stands at ₹4,712 crore (~$565M).
- MUFG had previously invested $400M in April 2023.
- MUFG becomes the second-largest shareholder after DMI Limited, Mauritius.
- Existing investor Sumitomo Mitsui Trust Bank Ltd participated in the earlier round.
The bigger picture
- MUFG has also invested in other Asian fintech firms like Ascend Money (Thailand), Grab (Singapore), Akulaku (Indonesia) and Mynt (Philippines).
- DMI Finance has acquired Oxymoney and ZestMoney in the past year.
- The company aims to expand its balance sheet and boost MSME lending to 25% of total loans from 10% in 12-18 months.
About the business
- DMI Finance is a digital-led NBFC (non-banking financial company) offering personal, consumption and MSME (micro, small and medium enterprise) loans.
- It provides point-of-sale (POS) loans through embedded finance partners like Samsung, Google Pay and Airtel.
- Its customer base is over 15 million (or 25 million per another source).
- In FY24, it disbursed over ₹18,000 crore (~$2.25B) in loans.
- Its overall loan book as of 31 March 2024 was ₹14,550 crore (DMI Group, including DMI Housing Finance).
- Retail consumer lending makes up 84% of the loan book, affordable housing 12%, and wholesale 4%.
- FY24 net profit was ₹417 crore (up from ₹320 crore in FY23).
- Capital adequacy as of 31 March 2024 was 44.8% (down from 50.9% a year earlier).
What happens next
- Use funds to expand balance sheet and boost MSME lending to 25% of total loans from 10% in 12-18 months.
- Open to acquisitions.
- Target loan book of ₹50,000 crore over 5-7 years.
The deal
- Type
- funding
Investors
- MUFG Bank (lead) — Consolidated subsidiary of Mitsubishi UFJ Financial Group, a Japanese financial conglomerate.
Founders
- Shivashish Chatterjee, co-founder
- Yuvraj C Singh, co-founder