Japan’s Mitsubishi UFJ Financial Group (MUFG) is preparing to launch a dedicated India-focused investment vehicle with an initial corpus of about $250 million (Rs 2,300-2,400 crore), stated a report by The Economic Times, quoting sources.
The fund is expected to target early-stage fintech companies, reflecting the Japanese financial giant’s expanding interest in India’s digital financial services ecosystem.
The corpus could eventually be scaled up to $400 million, added the report.
The initiative will reportedly be spearheaded by Mayank Shiromani, deputy chief investment officer at MUFG Innovation Partners.
MUFG has been investing in Indian fintech startups through its $300-million Ganesha Fund, established in 2022. While that vehicle largely focused on growth-stage opportunities, the new fund is expected to broaden the firm’s investment strategy by increasing its exposure to earlier-stage companies, stated ET.
The move comes at a time when India’s venture capital market is showing signs of resilience despite a broader slowdown in private equity activity.
According to a recent report by Bain & Company, the overall PE-VC investments in the country fell about 17% year-on-year to $36 billion in 2025. However, venture capital and growth investments remained relatively steady, helping cushion the decline in traditional private equity dealmaking.
Recent funding trends also point to a recovery in startup investment activity.
Proprietary data compiled by DealStreetAsia shows that venture funding in Indian startups reached $4.76 billion in the first quarter of 2026, up 30% from $3.65 billion in the preceding quarter. The increase suggests renewed investor appetite for the market and underscores India’s continued appeal as a long-term growth destination for global capital.
While some major international investors, including SoftBank and Tiger Global, have adopted a more cautious approach following their aggressive deployment of capital during 2020-2023, other institutional investors have continued to deepen their presence in the country.
MUFG is among a growing group of investors seeking opportunities in India, alongside vehicles such as the SMBC Asia Rising Fund and other Asia-focused investment platforms.
