DMI Finance Private Limited | Company Prefile - Funding & investors

DMI Finance Financials | Company Prefile - Funding & investors

DMI Finance Private Limited is a leading non-banking financial company (NBFC) in India, recognized for its technology-driven digital lending solutions. Founded in 2008 by Shivashish Chatterjee and Yuvraja C. Singh, the company has steadily grown to become a key player in the personal and MSME lending space with a strong focus on innovation, automation, and customer-centric services.

Background and Evolution

Initially started as a traditional NBFC, DMI Finance embraced digital transformation early to address the credit needs of underserved and emerging segments in India’s vast financial market. By leveraging artificial intelligence (AI) and advanced data analytics, DMI Finance streamlined loan underwriting and disbursal processes, making credit more accessible to individuals and small businesses that often face hurdles in conventional banking.

Business Model and Product Portfolio

DMI Finance specializes in offering a diverse range of credit products including personal loans, MSME loans, consumer durable financing, education loans, medical loans, lifestyle loans, and affordable home loans. The company’s digital-first approach enables quick loan approvals and minimal paperwork, enhancing customer experience significantly.

Notably, the firm operates with a hybrid model combining fintech agility with NBFC regulatory compliance, ensuring robust credit assessments while maintaining operational efficiency. This model has helped DMI Finance grow its loan book to over ₹15,000 crore by the end of FY 2024, backed by a widening customer base and repeat business.

Strategic Acquisitions and Partnerships

To strengthen its market position in the fast-growing embedded finance sector, DMI Finance acquired ZestMoney, a prominent Buy Now Pay Later (BNPL) startup, in 2024. This acquisition allows DMI to offer digital credit products to a broader demographic leveraging BNPL’s rising popularity among consumers. Additionally, the company has partnered with major banks and fintech platforms to enhance its reach and technology capabilities.

Financial Health

DMI Finance has attracted substantial investments, including a notable $334 million funding round led by Japan’s MUFG Bank, underscoring investor confidence in its growth potential and operational model. The company has consistently received strong credit ratings (AA from ICRA), reflecting its stable financial health and growth prospects.

Future Growth and Vision

DMI Finance aims to deepen its footprint in India’s digital lending ecosystem by expanding into new geographies and product lines while continuously enhancing its AI capabilities and risk management frameworks. The company’s vision is to democratize credit accessibility across India’s diverse socio-economic landscape through technology-led innovation.

Financial Performance

• As of September 30, 2024, DMI Finance’s consolidated net worth stood at ₹7,689 crore with a gearing ratio of 1.2x. On a standalone basis, net worth was ₹6,967 crore with similar leverage.

• The Group’s total loan book reached nearly ₹15,103 crore, comprising 85% retail consumer lending, 11% affordable housing finance, and the remainder in wholesale loans.

• DMI Finance reported a profit after tax (PAT) of ₹138 crore for H1 FY2025 and ₹403 crore for FY2024, with a total gross asset base of over ₹16,206 crore.​

• The company maintains robust liquidity, holding ₹2,660 crore in cash and liquid investments, plus unutilized working capital lines of ₹459 crore as of September 2024.

• DMI’s funding cost increased to 9.4% in H1 FY2025 while loan yields stood at 22.9%, as the RBI's tighter guidelines on consumer credit weighed on growth and profitability.

Funding History & Investors

• DMI Finance has raised over $1.13 billion (approx. ₹11,992 crore) across five funding rounds since 2008.​

• The most recent equity capital raise took place in August 2024: $400 million (~₹3,290 crore) led by Mitsubishi UFJ Financial Group (MUFG Bank), with additional participation from Sumitomo Mitsui Trust Bank and other global investors.​

• Other historical investors include NXC, New Investment Solutions, and DMI Limited, Mauritius.

• The company has a strong international investor base, adding resilience and credibility to its balance sheet and growth strategy.

Business Model Highlights

• DMI Finance is a digital-first lender offering personal, MSME, consumption, and education loans. It has partnered with platforms like Samsung, Google Pay, and Airtel to deliver embedded finance solutions.

• The company covers 95% of India’s pin codes and has an accessible customer base exceeding 25 million.

• Recent strategic moves include the acquisition of ZestMoney, a Buy Now Pay Later fintech, to expand credit offerings and customer reach.

Summary

DMI Finance Private Limited stands out as a successful NBFC that has effectively harnessed digital technologies to transform lending experiences in India. Its journey from a conventional lender to a digital finance leader highlights the rising importance of fintech in driving financial inclusion. With strategic acquisitions like ZestMoney and robust funding, DMI Finance is well-positioned to capitalize on India’s growing demand for innovative and accessible financial products.