- MUFG injects $100M into its newly acquired Indonesian lending arm, Home Credit.
- Fresh capital to power digital, ESG-focused loans for the underbanked after $621M takeover.
- Rapid funding shows confidence Home Credit’s model can scale under a major bank to serve the unbanked.
MUFG’s Fresh Funding!!
Just months after completing its $621 million takeover of consumer finance provider Home Credit’s Indonesian and Philippine units, Japan’s Mitsubishi UFJ Financial Group (MUFG) has already poured in fresh funding.
MUFG’s lending arm has extended Home Credit Indonesia $100 million in new capital to finance increased digital and ESG-focused loans for the underbanked.
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Their Plans?
Home Credit, which runs point-of-sale payment plans for major retailers like Samsung, aims to advance financial inclusion through smartphone purchase financing and other digital services.
MUFG fully acquired the Indonesian business in October and sees an underpenetrated market for providing credit access via digital channels.
The added financing comes after Home Credit’s regional sale, suggesting MUFG envisions considerable room for growth powering digital loans in the Indonesian market of 260 million people.
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Japanese investment confidence
As Japanese banks and financiers eye overseas expansion, the injection displays confidence that Home Credit’s digital lending model can achieve scale with the backing of a major financial player.
The funding underscores forecasts for surging demand for digital financial offerings across Southeast Asia, where several consumers lack credit histories.
