MUFG plans $250 million fund for Indian fintech startups

• 04 Jun 2026
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According to a report by The Economic Times, Mitsubishi UFJ Financial Group (MUFG) is planning to launch a dedicated investment vehicle aimed at Indian fintech startups. The investment vehicle would come with an initial capital of approximately $250 million (which is between Rs 2,300-2,400 crore). The new MUFG India startup fund’s focus will be on early-stage companies. It will allow for expansion of MUFG's investment strategy beyond its existing $300 million Ganesha Fund, which was established in the year 2022 and primarily targeted growth-stage opportunities. 

MUFG Innovation Partners Deputy Chief Investment Officer, Mayank Shiromani, will lead the initiative. Eventually, the fund's total capital may eventually increase to $400 million so as to reflect MUFG's commitment to Indian market. This development comes as India's venture capital landscape showcases resilience despite there being a broader slowdown in private equity activity. 

As per a recent report by Bain & Company, in 2025, overall private equity and venture capital investments in India witnessed a major drop, i.e., by approximately 17% year-on-year to $36 bn. However, venture capital as well as growth investments have remained relatively stable and provided a buffer against decline in traditional private equity deal-making. As per DealStreetAsia data, in 2026’s first quarter, venture funding for Indian startups reached $4.76 billion. This indicates a 30% increase from previous quarter. 

Also Read: Legal Requirements for Fintech Startup Company in India

This increase clearly suggests that there is a renewed investor interest in Indian market and highlights its appeal as a long-term growth destination for global capital. While some major international investors like SoftBank and Tiger Global have adopted a more cautious approach after aggressive capital deployment from 2020 to 2023, MUFG, alongside other Asia focused investment platforms like SMBC Asia Rising Fund, is among the growing number of investors seeking opportunities in India. 

About Mitsubishi UFJ Financial Group (MUFG) 

Mitsubishi UFJ Financial Group, abbreviated as MUFG, is the largest banking and financial group in Japan. It is among one of the world's ten largest bank holding companies. The head office of MUFG lies in Tokyo, Japan. The group provides many financial services like banking, investment, trust banking and asset management to name a few. The group has a strong presence globally as it operates in more than 50 countries around the world.

MUFG has a strong presence in India as well primarily due to branches in major cities like New Delhi, Mumbai, Bengaluru, Chennai, Neemrana and Ahmedabad. MUFG was also the first Japanese bank to open a branch in GIFT City, Gujarat. Over the years, the bank has continued to expand its operations and support businesses in India.

Reference: ET Startup News