MUFG Bank to Invest USD 300 Million in Indian Startups
MUFG’s core banking subsidiary MUFG Bank announced today that it plans to invest USD 300m in Indian startups through the new “MUFG Ganesha Fund”.
Through this fund, MUFG Bank will invest in middle- to late-stage Indian startups. In the future, MUFG aims to leverage their group strengths to provide a wide range of financial services to their portfolio companies.
These investments are in addition to those made by MUFG’s corporate venture capital arm, MUFG Innovation Partners (MUIP), which in January 2022 invested in M2P Fintech, a leading financial infrastructure company that enables businesses of any scale to embed financial products in their customer journeys. M2P is founded and headquartered in India, with market presence in multiple countries in Asia.
India, aided by strong economic growth, has seen an increase in the number of startups leveraging digital technology, given the rise of young digital natives in the country, the rapid spread of the Internet, and the promotion of governmental policies that support digitalization. Many of these startups are using technology to solve social issues, such as fintech companies that support unbanked segments within the country who were previously unable to receive financial services as well as companies specializing in the environmental sustainability and renewables sectors.
Since positioning the capture of Asian growth, responding to the digital shift, and contributing to environmental and social issues are priority strategies, MUFG has pursued initiatives in the region, such as building a business platform through investments in partner banks and supporting startups via Mars Growth Capital. MUFG will further contribute to the development of new industries and the sustainable development of local communities by financially supporting the growth of startups in India. Through the fund, MUFG will also drive collaboration with promising companies in the areas of tech and IT, and explore new business opportunities.
Source: MUFG press release
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