Non-banking finance company (NBFC) DMI Finance said on Monday it had raised $400 million in an equity funding round led by Japan’s MUFG Financial Group. DMI Finance said the financing involved primary and secondary transactions, with participation from existing investor Sumitomo Mitsui Trust Bank.

In an interview with FE, Shivashish Chatterjee, co-founder and co-managing director of DMI Finance, said the end use of the new funds is to continue expanding existing businesses.

“We have been one of the country’s most active digital finance companies for the past few years, and we intend to continue to expand our business at a similar pace. The products we are involved in are consumer loans, personal loans, and MSME credit (micro, SMEs). We hope to use the money to expand each product,” he said.

“Going forward, we think MSME will be an area of ​​greater focus for us than in the past. We used to be primarily a consumer finance company, but we will have a meaningful MSME finance book,” Chatterjee added.

Chatterjee said whether or not NBFCs are eyeing inorganic growth post-fundraising, inorganic acquisitions “have always been something we’ve been looking for. Given the right opportunity and targets, we’re definitely looking to grow our business through inorganic acquisitions. We intend to remain a digital lender, so our acquisitions should make us more of a digital lender.”

While Chatterjee did not share details of the valuation of the broader fundraising, it invested Rs 1,910 crore, or about $232 million, in the round, according to a release from MUFG Bank. DMI Finance raised $47 million in an equity investment round in January 2022, including new investors Sumitomo Mitsui Trust Bank, New Investment Solutions and NXC Corporation.

According to a release by DMI Finance, it finds and serves customers through multiple digital channels and is the preferred embedded digital finance partner of leading players such as Samsung, Google Pay and Airtel. DMI Finance claims to cover 95% of crypto in India and has an accessible customer base of 25 million which is expected to grow to over 40 million in FY24. It expects to pay out more than $2.5 billion in FY24.