MUMBAI: Mitsubishi UFJ Financial Group and its subsidiary MUFG Bank will integrate the operating functions of the Ganesha Fund, an entity that invests in startups in India, with Dragon Funds to consolidate management of the corpus.
MUFG Bank’s wholly owned subsidiary Mars Equity and its managed equity funds, collectively referred to as Dragon Funds, will consider setting up a second fund with a target of $600 million, the company said in a statement on Wednesday.
will consolidate Ganesha’s equity investment processes and portfolio management functions within Dragon Funds, strengthening the platform that provides growth capital to global mid- to late-stage technology companies, including those in India, and underscoring the Japanese company’s commitment to this region.
, launched in 2023, invests in growth-stage technology and technology-enabled companies across the world, with India as a core focus. The investment firm has backed Indian startups including Meesho, , MoEngage and KreditBee through its previous $500 million global fund. The second fund will attract domestic and international investors with opportunities in high-growth markets around the world, including India.
Through the integrated management of Ganesha by Dragon Funds, MUFG will deepen its relationships with India’s startup and technology ecosystem. It will act as a bridge between Japanese and global investors and operating companies.
MUFG network
MUFG Bank operates a six-location network across India, providing a range of corporate banking services, including deposits, lending and domestic and cross-border foreign exchange transactions.
It has partnerships with local banks and non-bank financial institutions. In April, MUFG Bank completed its acquisition of a 20% stake worth ₹39,618 crore ($4.4 billion) in Indian non-bank lender Shriram Finance.
MUFG’s positioning of India as a market of critical strategic importance comes as the country establishes itself as a high-growth market expected to become the world’s third-largest economy by 2030.