DMI Finance Announces the Closure of a $400 Mn Equity Investment Round Led by Mitsubishi UFJ Financial Group, Inc. With Participation From Existing Investors Including Sumitomo Mitsui Trust Bank Limited

DMI Finance Private Limited (“DMI Finance”) today announced the closure of a USD 400 million equity investment round led by Mitsubishi UFJ Financial Group, Inc. through its consolidated subsidiary MUFG Bank, Ltd (“MUFG”), with participation from existing investor Sumitomo Mitsui Trust Bank Limited (“SuMi TRUST Bank”). This round includes primary and secondary transactions.

DMI Finance is a pure-play digital lender with products including consumption, personal and MSME loans. It leverages technology to optimize every step in the lending stack, from sales and underwriting through to customer service and collections.

DMI Finance 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 covers 95% of India's pincodes and has an accessible customer base of 25 million which is expected to grow to 40 million+ in FY24. It is projected to disburse over USD 2.5 billion in FY24 across products.

DMI Finance is AA- rated by ICRA and supported by leading Indian and international banks.

Shivashish Chatterjee, Co-Founder and Joint Managing Director of DMI Finance said: “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. 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.”

Yuvraja C. Singh, Co-Founder and Joint Managing Director of DMI Finance said “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. With their patience and deep experience in the financial markets, we feel that MUFG and SuMi TRUST Bank, are the perfect investors for us. We look forward to working together.”

Masashige Nakazono, Managing Director, Head of Global Commercial Banking Planning Division of MUFG Bank said: “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. We’re excited to support DMI Finance’s growth through our investment as a strategic partner and to contribute to the financial inclusion in India. We are looking forward to accompanying DMI Finance’s promising voyage in the digital financial market.”

Masaya Noda, Managing Executive Officer of SuMi TRUST Bank said: “We feel honoured to participate in this equity investment round and contribute to DMI’s growth as a “Strategic Investor”, following our initial investment that 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. We also look forward to creating business opportunities to collaborate with DMI as its business partner, and to growing together with DMI through India-related business.”

About the DMI Group

DMI Finance is a Systemically Important Non-Banking Financial Company and part of the DMI Group. For more information, please visit: https://www.dmifinance.in.

Founded in 2008 and supported by a deeply experienced team across 40+ offices in India, the DMI Group is a pan-India financial services platform with core businesses in digital finance, housing finance and asset management. It has raised over USD 1.5 billion of equity investment and is supported by global institutional investors, strategic family offices and leading Indian and international banks.

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. The Group has about 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our clients, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.

About Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank)

Established in 1925, SuMi TRUST Bank is Japan's largest trust bank with JPY 224 trillion (~USD 1.95 trillion) of custody assets and JPY 87 trillion (~USD 760 billion) of assets under management. SuMi TRUST Bank provides a wide range of services concerning commercial bank business, asset management and administration, and disposal of assets, with trustee business such as pension trusts and investment trusts, and complementary businesses such as real estate brokerage and stock transfer agency services. SuMi TRUST Group's purpose is "Creating new value with the power of trusts and let prosperous future for our clients and society bloom" and is promoting initiatives to achieve both social value creation and economic value creation. For more details, please visit www.smtb.jp/english.

DMI Finance Launches Personal Loan Product on Google Pay

DMI Finance to provide seamless digital personal loans to Google Pay users

DMI Finance Private Limited (“DMI”) today announced the launch of a personal loan product on Google Pay to make reliable credit accessible for pre-qualified users of Google Pay.

This product leverages the dual advantages of Google Pay’s customer experience and the digital loan disbursal process of DMI and will also help bring new-to-credit users into the ambit. Eligible users are pre-qualified using criteria set by DMI Finance and the product offer is made available to them via Google Pay. These users will have their application processed in near real-time with access to the money in their bank accounts.

This launch with Google Pay of an integrated, personal loan journey for its users continues DMI’s focus on building innovative digital financial products in partnership with leading players in the digital finance ecosystem.

The program will disburse up to INR 1 Lakh per loan which would be repayable over a maximum of 36 months. This partnership is being launched over 15K+ pin codes.

Shivashish Chatterjee, Co-founder and Joint MD, DMI Finance, said: “We are excited to make our Personal Loan product available on Google Pay in India. At DMI, we focus on working with truly world-class collaborators to leverage our combined strengths to deliver the best possible digital credit experience to a rapidly growing customer set. Our teams have worked closely together to bring transparent and seamless credit to millions of Google Pay users. We look forward to scaling this new partnership in the years to come and make the promise of financial inclusion a reality for many millions more.”

Sajith Sivanandan, Business Head, Payments and NBU, Google APAC, LatAm, Africa and EMEA, said: "Simplified access to reliable credit is critical to economic revival as we emerge from the difficulties posed by the pandemic, and experiences that can make this available to them within a few taps on their mobile phones will offer incredible convenience. We are very excited to collaborate with DMI Finance to make this possible for Google Pay users, as it brings to life the promise of financial inclusion enabled by technology."

About DMI Finance

Founded in 2008 and supported by a deeply experienced team across 40 offices in India, DMI is a pan-India credit platform with core businesses in digital consumer and MSME finance, housing finance, wholesale finance, and asset management. It is a technology-first lender with class-leading digital finance initiatives. It is supported by global institutional investors, strategic family offices, leading banks, and public market creditors in India. For more details, please visit www.dmifinance.in.

About Google

Google's mission is to organize the world's information and make it universally accessible and useful. Through products and platforms like Search, Maps, Gmail, Android, Google Play, Chrome and YouTube, Google plays a meaningful role in the daily lives of billions of people and has become one of the most widely-known companies in the world. Google is a subsidiary of Alphabet Inc.

Bosch's Spin-off ACTICO Signs DMI Finance as Its 1st Indian Customer for their Machine Learning Offering

ACTICO (formrely Bosch Financial Software), a global leader in providing software for intelligent automation, today announced DMI Finance as its first Indian customer for its new product, ACTICO Machine Learning.

DMI Finance has been working with the platform since April 2018 to enable real time decisions across the lending lifecycle - from credit scoring and decisioning to loan disbursals. DMI Finance has also made an investment in ACTICO Machine Learning to apply intelligent technologies to optimize and automate decision-making processes at scale.

Speaking on this partnership, Mr. Shivashish Chatterjee, Co-Founder & Managing Director, DMI Finance said, “We are happy to extend our already successful partnership with ACTICO. Machine Learning is an integral part our decisioning capabilities - in line with our focus of making the best credit decision in the least amount of time. We believe ACTICO’s Machine Learning platform is a strategic addition to our technology stack and will help us achieve scale without meaningful additions to our team.”

Speaking on the new customer win, Mr. Ajit Shah, Managing Director- APAC, Middle East and Africa, ACTICO, said, “We are thrilled to deepen our association with DMI. The Machine Learning capability of our platform provides a vital toolkit for Banks, NBFCs as well as for the new age Fintech companies to unearth insights from ever-increasing quantities of data. We strongly believe that, in the future, a combination of human intelligence and data insights will help firms take optimum decisions and this will continue to be the guiding philosophy for our product development endeavors.”

Launched in May 2019 in India, the ACTICO Machine Learning platform totally redefines the conventional approach of using machine learning in standalone systems and integrates it into operational decision-making. The predictive models generated are used to optimize business outcomes in intelligent automation scenarios across business lifecycle, such as product recommendations, fraud detection and risk management.
About ACTICO

ACTICO is a leading international provider of software for intelligent automation and digital decisioning. Its roots go back to 1997 and Innovations Software Technology GmbH, which became part of the Bosch Group in 2008. ACTICO was formed when Bosch spun off its financial software operations in November 2015. As an independent company, it supports its international customers from locations in Germany, the U.S., and Singapore.

It provides best-in-class software solutions and tools with applications from financial services to manufacturing and retail to healthcare, enhancing day-to-day decision-making and end-to-end automation.

Supported by a deeply experienced team, DMI Finance was founded in 2008 and since then has grown into a pan-India credit platform with core businesses in corporate lending, housing finance, digital consumer & MSME finance and asset management. It is supported by global institutional investors, strategic family offices, leading banks and public market creditors in India.

Via ~ Business Wire India feed, with some editing

Solar EPC Firm Rays Power Infra Raises $28.5 Mn from DMI Finance

Jaipur headquartered solar power developer and EPC (Engineering, Procurement, and Construction) player, Rays Power Infra, has closed first round of Rs 200-crore (~ US$28.514 million) in mix of debt and equity funding from DMI Finance (DMI), a New Delhi-based Non-Bank Finance Company.

The Solar startup would use majority of the fresh capital raised in strengthening its presence in the country and develop ground-mounted solar power projects. Rays also plans to grow its co-development business model, a bespoke model that Rays has pioneered in the Indian solar industry, a company statement said.

Founded in 2011, Rays Power Infra is one of the Largest solar developer and EPC management company. An EPC company provides engineering design, obtain equipment, and then deliver the functioning asset to the client. Rays has built a solar portfolio of 64 megawatt (MW) and has an EPC track record of delivering over 500 MW of solar assets.

Ketan Mehta, founder and managing director, Rays Power Infra, said, “...As co-developer partner, we are involved in financial closure and equity investment for development of project prior to sale. We intend to utilize the funds in pursuing development of further assets on co-development basis."

The company said that it is pursuing opportunities in distributed generation, rooftop solar assets and entering the retail sector with e-mobility solar solutions targeting retail consumers.

With 620 MW projects under its portfolio, Rays was ranked as the 3rd largest Solar EPC Player in the country in 2015 following which it again was recognized as one of the top 10 players across the globe apart from US & China in 2017 by IHS Markit.

In recent funding of solar energy companies, Delhi-based Azure Power, which is one of the country’s largest independent solar power producers with a solar portfolio of over 3 Giga Watt spread across 23 states, has raised around $185 million primary capital through an equity offering.

In August this year, Hyderabad based Cygni Energy Private Limited, an innovative Solar-DC solutions startup had raised funds of $ 6.4 Million in a combination of Equity and Debt. The equity funding is led by Endiya Partners, a leading early-stage venture capital firm that invests in product startups and the debt by IndusInd Bank, a leading Private Bank in India.

In June, an another solar energy startup, Fourth Partner Energy, also based out of Hyderabad had raised whopping $70 million in Series B funding from The Rise Fund, a global impact investment fund managed by TPG Growth.

Source - Economic Times