Delhi-based NBFC DMI Group has raised funding of $123 million from South Korean gaming company Nexon (NXC Corporation).
This round of equity is led by DMI Limited, the holding company of the Indian lending arms of DMI. The investment in DMI Limited was, in turn, led by NXC Corporation, the company said in a statement.
DMI plans to use the fresh funding to accelerate its balance sheet growth in the digital consumer and micro, small and medium enterprises (MSME) finance businesses. With more than 300 million Indians waiting to be ‘fin-cluded’, Nexon will be able to fintech segment in India.
"NXC sees this as an opportunity to have an impact on financial inclusion in India where a large part of the population is locked out of the formal credit markets," it added.
With this round, DMI's total equity and fund capital raised since 2008 stands at more than $800 million. The NBFC had previously announced the closure of a $200 million FPI-funded NCD issue in March 2020.
A DMI spokesperson, said,
“The past 18 months have been a complex operating environment for financial services companies – from the liquidity crisis engendered by the IL&FS default to the economic repercussions of COVID-19. Throughout this period, DMI has been able to continually raise substantial capital and has added $343 million of equity capital and $350 million of FPI- subscribed NCDs. N.I.S New Investment Solutions, the largest shareholder in DMI Limited, participated in each of those funding rounds."
DMI was founded in 2008 by former Citigroup executives Shivashish Chatterjee and Yuvraja C Singh. In 2013, the Burman family of consumer goods maker Dabur India picked up a stake in it.
The company has 40 offices with core businesses in digital retail and SME finance, affordable housing finance, wholesale finance and asset management. According to its website, DMI serves more than five lakh customers across nine states in India.
(Edited by Saheli Sen Gupta)