The MUFG investment plan is predicted to elevate the Akulaku valuation worth US$1.5 billion.
Heaptalk, Jakarta — Mitsubishi UFJ FinancialGroup Inc (MUFG) is reported to conduct a strategic investment agreement worth USD200 million, or approximately Rp3.1 trillion, to the fintech unicorn company, Akulaku.
As cited by Bloomberg, this Banking company based in Japan is still under negotiation progress related to the requirements for potential financing of the Akulaku platform. The Representative of MUFG explained, “This action aligns with the MUFG endeavor, which is currently trying to expand its existence in Southeast Asia,”
According to a related source, the Akulaku valuation is estimated to attain US$1.5 billion, or equal to Rp23.4 trillion, by dealing with this agreement. The MUFG investment in the platform will also augment the company’s capital raised earlier this year, including the capital fundraising of US$100 million of the Siam Commercial Bank Pcl Thailand.
Recently, MUFG has also strategically acquired a similar business model, Home Credit. Through its subsidiary company, Bank of Aydhya, this Japan-based banking company has fully acquired Home Credit in the Philippines, while for Indonesia portion was only 85%. This corporation’s step was to enlarge MUFG’s consumer business in Southeast Asia.
“We contain comprehensive products to provide a fantastic solution that is not solely devoted to the global clients who intend to expand to local businesses but also serving the local client who aims to develop their business exposure internationally,” said the Executive Officer Country of MUFG Indonesia, Kazushige Nakajima.
During the business progress this year, Kazushige revealed the MUFG had experienced a robust recovery from the COVID-19 pandemic, reflected by the credit enhancement of 25% in 2021, and the Third Fund Capital (DPK) of the company is projected to grow by 30%. On the other hand, Jakarta’s branch MUFG also noted its total asset worth US$12.1 billion, with an outstanding credit attaining US$5.6 billion and DPK worth US$4.1 billion.
MUFG continues to encourage business growth in Indonesia. This Japan-based banking company aims to provide financial support to Japanese and non-Japan companies through the branch office, including granting other contributions to strategic national projects.
