(Bloomberg) -- Indian shadow bank DMI Finance Pvt said it’s raising fresh funding from Japan’s Mitsubishi UFJ Financial Group Inc. at a valuation of about $3 billion as it seeks to ramp up its lending.
MUFG is set to buy around $330 million of stock in the company, DMI Finance co-founder Shivashish Chatterjee said in an interview Wednesday. The Japanese lender, which is already an investor in DMI Finance, will be the company’s second-largest shareholder after the deal, he said.
DMI Finance plans to use the capital to expand its balance sheet, Chatterjee said. It aims to boost lending to small- and medium-sized enterprises and will look at acquisitions, in addition to expanding its consumer finance lending and personal loan book, he said.
MUFG said it will invest 27.99 billion rupees ($333 million) in DMI as it seeks to tap into the accelerated development of digital financial services in India and after DMI expanded its business scale, according to a company statement dated Thursday.
(Updates to add MUFG statement in last paragraph.)
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