Japan's MUFG Plans $250 Mn India Startup Fund, Focus On Fintech

Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group, is setting up a $250 million (around ₹2,300-2,400 crore) India-focused fund to invest in startups, The Economic Times reported, citing people familiar with the matter.

The report said the fund will mainly back early-stage fintech companies, though it could also invest in growth-stage startups. The corpus may eventually be expanded to $400 million.

The fund will be led by Mayank Shiromani, deputy chief investment officer at MUFG Innovation Partners. The development signals MUFG's growing focus on India's startup ecosystem at a time when several global investors are increasing their activity in the country.

New Investors Step Up

The report noted that a fresh set of venture investors has become more active in India since 2025, helping offset the decline in dealmaking by investors such as Tiger Global and SoftBank.

Among those expanding their presence are MUFG, Susquehanna Asia VC, Enrission India Capital, SMBC Asia Rising Fund and Mirae Asset Global Investments. These firms have invested across sectors including fintech, consumer internet and digital services.

Data from Venture Intelligence cited by ET showed that Tiger Global's India investments have fallen sharply from 55 deals in 2021 and 47 in 2022 to just six in 2025, with no investments recorded so far in 2026. SoftBank, meanwhile, has not made a new India startup investment since 2022.

Focus On Fintech

ET reported that MUFG's $300 million Ganesha Fund, launched in 2022, primarily focused on growth-stage fintech investments. The new fund is expected to increase the firm's participation in early-stage startup funding.

The report said investors see India as an attractive market as startup valuations have corrected, competition for deals has eased and digital consumption has become more mainstream.

Puneet Kumar, CEO of Mirae Asset Venture Investments, told the newspaper that the current environment is allowing investors to access stronger opportunities as fewer large global funds are actively competing for deals.

The report added that financial services-focused investors are particularly optimistic about fintech, aided by regulatory developments in areas such as co-lending, cross-border payments and co-branded cards.