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Mitsubishi UFJ Financial Group (MUFG), through its subsidiaries MUFG Innovation Partners Co. (MUIP) and MUFG Bank, has launched a US$100 million finance-focused fund with Indonesia-based Bank Danamon.
Called the “MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership,” the fund will target series B startups that specialize in lending, payment, SaaS, ESG, wealth management, and embedded finance marketplace, MUIP chief investment officer Takashi Sano told Tech in Asia.
He added that depending on macroeconomic conditions, the fund will invest US$3 million to US$5 million in 15 to 20 companies over the next three to four years. For smaller R&D deals, the check sizes will be up to US$1 million.
The fund’s primary objectives are to support Danamon’s digitalization efforts and help it develop new customer acquisition channels. MUFG Bank will hold the biggest stake (89.9%), followed by Danamon (10%) and MUIP (0.1%).
Japan-based MUFG is one of the world’s largest financial groups, with around 2,100 locations in over 50 countries and a headcount of 160,000.
Danamon was acquired by MUFG in 2019 and has since grown into Indonesia’s sixth-largest commercial bank, operating 864 domestic branches.
MUFG has shown a greater interest in Indonesia over the past few years. It recently poured US$200 million into local fintech firm Akulaku.
See also: Series SEA: Who’s investing in the region’s fintech startups?
Editing by Miguel Cordon and Dhania Putri Sarahtika
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