MUFG Pumps US$100M into Home Credit Indonesia for Sustainable Financingby Fintech News Indonesia December 21, 2023
Home Credit, an Indonesian consumer finance company, has secured an investment of US$100 million from Mitsubishi UFJ Financial Group’s (MUFG) division in the country, according to a report by Tech in Asia.
This new capital injection will be strategically allocated towards financing initiatives that are aligned with Environmental, Social, and Governance (ESG) principles.
In a major move last year, MUFG announced that it intended to acquire Home Credit’s operations in both Indonesia and the Philippines, a deal that amounted to approximately US$621 million.
This strategic acquisition was spearheaded by MUFG in collaboration with its affiliates, Krungsri and Adira Dinamika Multi Finance. The transaction concerning Home Credit Indonesia, which resulted in MUFG obtaining an 85% stake, was finalised in October 2023.
Since its establishment in 2013, Home Credit has carved a niche for itself in the consumer finance sector, particularly in point-of-sale loans. These financial services provide customers with flexible payment options for purchases, available at various retail and online platforms.
With a customer base exceeding 6 million in Indonesia, Home Credit has formed partnerships with major corporations including Samsung, Vivo, Tokopedia, Bukalapak, and Blibli.
Earlier this year, Home Credit Indonesia had partnered with Superbank to offer working capital loans, predominantly aimed at serving the underbanked population.
According to the report, Home Credit’s director Volker Giebitz emphasised the importance of this financial support from MUFG in bolstering the company’s commitment to expanding financial inclusion.
A particular focus will be on enhancing digital access, with a special emphasis on financing for smartphones and tablets.
Featured image credit: Edited from Freepik