DMI Finance Private Limited, a New Delhi-based non-banking financing company (NBFC), has raised a $400 million equity investment led by Mitsubishi UFJ Financial Group, Inc through its consolidated subsidiary MUFG Bank, according to a statement.

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Existing investors Sumitomo Mitsui Trust Bank Limited also took part in the round which includes primary and secondary transactions, the company informed on Monday, 3 April 2023.

Last year in January, DMI Finance had received $147 million in an equity investment round from Sumitomo Mitsui Trust Bank Limited (SuMi), Liechtenstein-based asset management firm New Investment Solutions, and South Korean investment firm NXC Corporation. The company's other investors include Burman Family Office among others.

“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 an external partnership based on the power of its cutting-edge technologies," said Masashige Nakazono, MD, head of the global commercial banking planning division of MUFG Bank.

DMI Finance, an NBFC arm of the DMI Group, provides buy now pay later (BNPL), OEM (Original Equipment Manufacturer), personal loans, lines of credit, and MSME loans. The company was founded in 2008 and started lending in 2009. It has a customer base of more than 25 million in India and expects to grow to over 40 million in FY24. DMI Finance is projected to disburse over $2.5 billion in FY24 across products.

"Powered by world-leading digital infrastructure, India is in the midst of an unprecedented transformation. DMI Finance aims to be the trusted partner for Indian households and small businesses in addressing their rapidly growing financial needs," said Shivashish Chatterjee, co-founder and joint MD of DMI Finance.

In the space, another technology-led NBFC Avanti Finance Private Limited has raised $24 million in a Series B round of funding from Rabobank Group's unit Rabo Partnerships and IDH Farmfit Fund. Existing investors like Oikocredit and NRJN Trust also put in money in the round.

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