MUFG Bank, a consolidated subsidiary of Japanese banking firm Mitsubishi UFJ Financial Group (MUFG), is investing $200m in Silvrr Technology (Akulaku).
Akulaku is a fintech company engaged in offering digital financial services in Indonesia and across Southeast Asia.
Specifically, the firm, which is backed by Jack Ma’s Ant Group, offers digital banking, consumer credit, investment, and insurance brokerage services.
According to an earlier report, which revealed MUFG’s plans to invest in Akulaku, the deal is believed to have valued the Indonesian fintech at around $1.5bn.
With this investment, MUFG will be able to better meet the diverse financial demands of Indonesia and other Asian nations while also diversifying its growth strategies, the Tokyo-based bank said.
“For MUFG, which considers Asia its second home market, Indonesia is particularly important because it boasts the largest GDP in Southeast Asia and is expected to have high growth rates in the future,” MUFG Bank explained.
In addition, the investment is also expected to enable MUFG Bank to meet the financial needs in online scenarios besides those at offline stores.
In February this year, Akulaku raised $100m in funding from Siam Commercial Bank (SCB).
SCB’s investment followed a $125m funding in 2021, which was led by existing investor Silverhorn Group.
Furthermore, in the fourth quarter of 2021, Akulaku’s digital banking arm Bank Neo Commerce (BNC) raised around $175m through a public rights issue on the Indonesia Stock Exchange.
Last week, MUFG CEO Hironori Kamezawa told Reuters that the group is ready to make acquisitions to expand operations in Asia.
Most recently, Japanese fintech startup Kanmu announced a capital and business alliance with the banking group.