TOKYO – Mitsubishi UFJ Financial Group (MUFG) is in talks to invest about US$200 million (S$270 million) in Akulaku, an Indonesian online lender backed by Mr Jack Ma’s Ant Group, according to people familiar with the matter.
MUFG, as Japan’s biggest lender is known, is negotiating the terms of a potential financing for Akulaku as it seeks to expand its presence in the Southeast Asian nation, the people said.
The funds could give the startup a valuation of around US$1.5 billion, the people said, asking not to be identified because the matter is private.
An investment by MUFG in Akulaku would add to the capital raised by the company, including a US$100 million fundraising from Thailand’s Siam Commercial Bank Pcl earlier in 2022, the people said.
Other investors including private equity firms have shown interest in investing in Akulaku, the people said.
Considerations are ongoing and talks could still fall apart, the people said. Representatives for Akulaku and MUFG declined to comment.
Founded in 2014, Akulaku offers digital banking, consumer credit, digital investment and insurance brokerage services, according to its website.
It operates in Indonesia, Vietnam, Malaysia and the Philippines, the site shows.
Earlier in 2022, Akulaku had been considering a United States listing via a merger with a blank-check company that could have valued the combined entity at about US$2 billion, people familiar with the matter said at the time.
MUFG has been expanding in Southeast Asia to tap into the region’s growth potential and young population.
In November, Bank of Ayudhya Pcl, a Thai banking unit of MUFG, said it will acquire the consumer finance businesses of Netherlands-based Home Credit NV in Indonesia and the Philippines for about €474 million (S$679 million). BLOOMBERG
