The Japanese banking group is carving out the terms of a potential investment in the digital lender to expand operations in the country, the sources said.
MUFG’s investment could value Akulaku, which is backed by Jack Ma’s Ant Group, at around $1.5bn, they added.
According to the sources, other entities including private equity firms have expressed interest in investing in Akulaku.
Established in 2014, Akulaku operates in Indonesia, Vietnam, Malaysia and the Philippines. It offers digital banking, consumer credit, investment and insurance brokerage services, according to the firm’s website.
The talks are still going on and there is no certainty that a deal will materialise, the sources added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
SCB’s investment followed a $125m funding in 2021, which was led by existing investor Silverhorn Group.
In addition, in the fourth quarter of 2021, Akulaku’s digital banking arm Bank Neo Commerce (BNC) raised nearly $175m via a public rights issue on the Indonesia Stock Exchange.
Earlier this year, Akulaku was also considering listing in the US via a SPAC deal, which could value the firm at $2bn, the source had told the publication at the time.
To capitalise on the growth potential offered by the region, the Tokyo-based MUFG has been expanding in Southeast Asia.
Last month, the lender announced that it will be acquiring the consumer finance units of Home Credit in the Philippines and Indonesia in a deal valued at $636.84m (JPY87bn).