MUFG funds Home Credit Indonesia for another $100M

Home Credit Indonesia, recently hit a financial milestone with a substantial investment. The firm successfully garnered a whopping $100M investment from Mitsubishi UFJ Financial Group's (MUFG) local unit.

• Funding Allocation: These funds will be directed towards Environmental, Social, and Governance (ESG) based financing. According to Volker Giebitz, the director of Home Credit Indonesia, this financing will bolster the company's mission to boost financial and digital inclusion. This is particularly relevant for smartphone and tablet financing.

• Background: The roots of Home Credit Indonesia trace back to the Netherlands, where it was initially a subsidiary of Home Credit. Established in 2013, offers point-of-sale loans, presenting customers with financing options for purchases at both physical and digital points of sale. It boasts of serving over 6 million customers in Indonesia, in cooperation with big-name firms such as Samsung, Vivo, Tokopedia, Bukalapak, and Blibli.

• Previous Funding: MUFG made notable strides in its acquisition efforts last year, taking over Home Credit's units in both Indonesia and the Philippines for an impressive $621M.

• Deal Details: This acquisition was maneuvered by MUFG in partnership with its subsidiaries, Krungsri and Adira Dinamika Multi Finance. MUFG now holds an 85% ownership stake in Home Credit Indonesia.

Home Credit Indonesia also joined forces with Superbank earlier this year to offer working capital loans, with a primary aim to cater to the underbanked population.