Japan’s largest financial group, Mitsubishi UFJ Financial Group (MUFG), announced a $250 million fund targeting India’s startups. Furthermore, the fund will focus on early- and growth-stage fintech companies. MUFG may increase the fund to $400 million, led by Deputy Chief Investment Officer Mayank Shiromani of MUFG Innovation Partners. This investment comes as a positive signal during a recent slowdown in startup funding.
Shifting Landscape of Startup Funding
MUFG and other investors are filling gaps left by SoftBank and Tiger Global, whose investments sharply declined between 2020-2023. Moreover, funds like Susquehanna Asia VC, Enrison India Capital, SMBC Asia Rising Fund, and Mirae Asset Global Investments have increased or continued investing since 2025.
Targeted Startup Investments
The fund primarily supports fintech, consumer internet, and digital service startups. Investments already include Jupiter, DMI Finance, Dhan, Oliv, Skydio, Apps For India, Safe Security, Atlis, Snabit, Pronto, and Battery Smart. Additionally, global angel investor Lachy Groom expanded investments in 2025-2026 with Pronto, Even Healthcare, and Alt Carbon. Groom also considered Airbound and Altion drone and aerospace startups.
MUFG’s Past Investments
MUFG previously used its “Ganesh Fund” for growth-stage fintech deals, starting in 2022. Moreover, the new fund will also support early-stage investments, reflecting a shift in MUFG’s strategy. Data from Venture Intelligence shows that Mirae and MUFG executed four deals each in 2025, while Susquehanna participated in ten and Enrison in fifteen. In contrast, Tiger Global and SoftBank dramatically reduced Indian investments over recent years.
Investment Rationale and Market Opportunity
Investors note valuations have reached reasonable levels, and competition for deals has declined. India’s digital consumption habits, developed by platforms like Zomato, Swiggy, PhonePe, Grow, Meesho, and Zepto, now allow new startups to scale with less capital. Consequently, MUFG and others see strong opportunities despite funding slowdowns from previous major global funds.
Focus on Financial Sector Startups
MUFG and other funds increasingly target financial services startups. For instance, SMBC Asia Rising Fund invested in Yes Bank, Shivalik Small Finance Bank, fintech infrastructure firms M2P and Modify, consumer lending startups Oliv, and trade financing player Vayana. Partner Rajiv Ranka highlighted significant opportunities in Series B and C rounds in fintech and financial services, noting higher transparency and business depth.
Strategic Impact
MUFG’s fund demonstrates confidence in India’s tech ecosystem, encouraging other global investors to consider early- and growth-stage deals. Furthermore, the investment aligns with India’s rising digital adoption and a growing base of tech-savvy users. With fewer global competitors active, India-focused investors may secure higher-quality opportunities in fintech and digital service sectors.
