MUFG and Bank Danamon Sets up US$100 Million Fund for Indonesian Startupsby Fintech News Indonesia February 1, 2023
MUFG Innovation Partners (MUIP) and MUFG Bank, subsidiaries of Mitsubishi UFJ Financial Group (MUFG), has set up a US$100 million fund with Bank Danamon Indonesia.
The fund named MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership is MUIP’s third and will focus on the Indonesian market.
MUFG has a 89.9% stake in the fund while Bank Danamon holds 10.0% and the remaining 0.1% will be owned by MUIP.
According to a statement by MUFG, the fund will be used to make strategic investments in emerging companies that are expected to have synergies with Danamon which is a subsidiary of MUFG Bank.
Through the fund, Danamon aims to enhance its product competitiveness, promote digitalisation, and attract new customers.
MUFG established MUIP, a fund management company, in January 2019 to strengthen open innovation through business alliances between MUFG Group companies and startups both in Japan and overseas.
The Japanese banking giant seems to be doubling down on its investments in Indonesia as MUFG announced just a month ago that it will be investing US$200 million in Indonesian fintech Akulaku.