MUFG partners with Danamon to launch US$100M startup fund in Indonesia

Mitsubishi UFJ Financial Group subsidiaries, MUFG Innovation Partners and MUFG Bank, have established a US$100 million fund in partnership with Indonesia’s commercial bank Danamon.

The fund, MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership, will make strategic investments in Indonesian companies that are expected to have synergies with Danamon.

Danamon was acquired by MUFG and MUFG Bank as a consolidated subsidiary in April 2019.

With this partnership, Danamon aims to enhance its product competitiveness, promote digitalisation and attract new customers through the customer contacts of the investees.

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This is MUIP’s third fund, in which MUFG Bank will have an 89.9 per cent stake while Danamon will own 10 per cent. MUIP will have 0.1 per cent equity in the MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership.

In January 2019, MUFG established MUIP, a fund management company, to strengthen open innovation through business alliances between the group companies and startups in Japan and overseas. MUIP has invested over JPY 40 billion (US$307 million) in companies globally.

Headquartered in Tokyo, Mitsubishi UFJ Financial Group is one of the world’s leading financial groups, with a presence in approximately 2,100 locations in more than 50 countries. The group offers commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

Danamon is the sixth-largest commercial bank in Indonesia in terms of assets. It provides consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 864 domestic branches.

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