Photo credit: Home Credit
Consumer finance firm Home Credit Indonesia has raised US$100 million from the local unit of Mitsubishi UFJ Financial Group (MUFG).
The company will “fully use” the funds for ESG-based financing.
“This funding from MUFG will support the company’s mission to increase financial inclusion, while increasing digital inclusion, especially through smartphone and tablet financing,” Volker Giebitz, director of Home Credit Indonesia, said in a statement.
Home Credit Indonesia was originally a subsidiary of the Netherlands-headquartered consumer finance firm Home Credit. Last year, MUFG announced its acquisition of Home Credit’s units in Indonesia and the Philippines for about US$621 million.
The acquisitions were made by the Japanese financial services firm along with its subsidiaries Krungsri and Adira Dinamika Multi Finance. The deal for Home Credit Indonesia, where MUFG would hold 85% ownership, was completed in October 2023.
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Established in 2013, Home Credit’s services include point-of-sale loans, providing customers with financing options for their purchases at both physical and digital points of sale. The company said it has served over 6 million customers in Indonesia, partnering with companies like Samsung, Vivo, Tokopedia, Bukalapak, and Blibli.
Earlier this year, Home Credit Indonesia partnered with Superbank to provide working capital loans, primarily targeting underbanked individuals.
Editing by Putra Muskita and Lorenzo Kyle Subido
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