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The funding marks the latest significant investment in India by Japanese multinationals, who remain key players in foreign direct investment, even as Western MNCs lose ground to private equity giants and sovereign funds.
Japanese investors are also seen as serious bidders in the forthcoming divestment of public sector stakes in IDBI Bank and Yes Bank. While Sumitomo Mitsui Banking Corporation (SMBC) is understood to be looking at IDBI Bank, MUFG has shown interest in Yes Bank.
Among other major Japanese investors, Sumitomo Mitsui Financial Group recently pumped in Rs 1,300 crore into its Indian arm, SMFG India Credit (formerly Fullerton India). The company had acquired Fullerton in Nov 2021 in a $2-billion deal.
SMBC has financed 5GW of renewables since 2019 and has announced plans for investment in solar projects. It is also involved in at least two large portfolio transactions in the road sector.
In March, Daiwa Securities acquired a minority stake in Ambit Finvest through a Rs 415-crore investment. Another Japanese financial giant, Nomura, has a presence in India in investment banking and lending through Nomura Capital India.
Nippon Life has made investments in both life insurance and mutual fund businesses in recent years. In Sept 2019, Nippon invested Rs 4,500 crore acquiring a majority stake in Reliance Nippon Life AMC.
DMI Finance, co-founded by Shivashish Chatterjee and Yuvraj C Singh, leverages technology throughout its lending process and specialises in consumption, personal, and MSME loans. The company primarily serves customers through digital channels and partners with major companies like Samsung, Google Pay, and Airtel to offer financial products.
Over the years, DMI Finance shifted from corporate lending to focus on small-ticket personal, consumption, and affordable housing loans. Earlier this year, the company acquired buy-now-pay-later startup ZestMoney.
As of March 31, 2024, retail consumer loans constituted 84% of DMI Finance’s Rs 14,550-crore loan book, with affordable housing at 12% and wholesale loans at 4%. DMI Finance disbursed $2.3 billion in loans during FY24. The company holds a ‘AA’ rating from ICRA and is supported by leading Indian and international banks.