DMI Finance, an Indian digital lending company, has announced the closure of a $400 million equity investment round led by Mitsubishi UFJ Financial Group, Inc. through its consolidated subsidiary MUFG Bank.

The round also saw participation from existing investor Sumitomo Mitsui Trust Bank Limited. This round includes primary and secondary transactions.

The investment round follows a $47 million raised by the NBFC from SuMi TRUST Bank, NXC Corporation, and New Investment Solutions in January 2022. The current round takes the total funding raised by the non-banking financial company (NBFC) to $900 million.

The firm says the investment will help to support its goal of promoting financial inclusion and the financial market across the large underserved population in India.

In the space, another technology-led NBFC Avanti Finance Private Limited raised $24 million in a Series B funding round led by Rabo Partnerships and IDH Farmfit Fund, along with participation from existing investors Oikocredit and NRJN Trust

Founded in 2008 by Shivashish Chatterjee and Yuvraja C Singh, the New-Dehli-based firm specializes in Buy Now Pay Later (BNPL) service, OEM (Original Equipment Manufacturer), personal and consumer loans, lines of credit, and MSME loans.

It employs leading businesses including Samsung, Google Pay and Airtel to provide diverse financial products to its customers across India.

The firm claims to cover 95% of India’s pin codes has a customer base of more than 25 million in India and expects to grow to over 40 million in FY24. It aims to disburse over $2.5 billion in FY24 across products during the same timeline.