Mitsubishi UFJ Financial Group plans to invest over $4 billion for a 20% stake in Shriram Finance, solidifying its position in India's growing financial services sector.

Target Overview

Japan's Mitsubishi UFJ Financial Group (MUFG) is set to invest over $4 billion in Shriram Finance, acquiring a 20% stake in one of India's foremost non-banking finance companies (NBFCs). Following this significant investment, Shriram Group will remain the largest shareholder and promoter of Shriram Finance. The corporate identity of Shriram Finance will stay unchanged, ensuring continuity for current operations and branding. Shriram Group currently maintains a 24.98% stake in Shriram Finance through its subsidiaries, Shriram Capital and Shriram Value Services.

Industry Overview in India

India's financial services market, particularly the NBFC sector, has witnessed substantial growth in recent years. With an increasing demand for retail loans and vehicle financing, NBFCs have positioned themselves as crucial players in augmenting financial inclusion across the country. As of September 2025, Shriram Finance's assets under management reached ₹2.8 trillion, showcasing its strong market presence.

Moreover, there has been a notable trend among Japanese financial institutions to invest in India's dynamic financial services landscape. This year alone, several major Japanese firms have made significant moves in the sector,