Danamon and MUFG Strengthen Commitment to Support the Indonesian Startup Growth through MUIP Garuda Fund

Press Release / 22 October 2024

Share

Jakarta, 22 October 2024 – PT Bank Danamon Indonesia Tbk (Danamon), in collaboration with its parent company MUFG and its group members, including Adira Finance, Home Credit Indonesia, and Zurich Asuransi Indonesia, reaffirmed their strong commitment to foster the growth of startups in Indonesia through strategic investments and collaboration. As a part of a leading financial group, Danamon and MUFG recognize the vital role of startups in driving the country’s digital economy, especially as Indonesia is ranked sixth globally for the number of startups, boasting more than 2,562 startups as of January 2024.  According to Startup Ranking, Indonesia leads ASEAN in terms of startup presence, showcasing tremendous potential for the growth and development of the country's vibrant startup ecosystem.

In its commitment to fostering startup growth, Danamon operates as a bank that has local and global network providing holistic financial solution that can be tailored to meet the customer needs. Alongside with its group members, Danamon drives various initiatives, including the provision of holistic financial products and services, strategic investments, and active participation in events that engage the startup ecosystem in Indonesia. Together, Danamon and its group members are dedicated to delivering innovative financial solutions that empower startups to develop and scale their businesses more efficiently.

One of Danamon's key initiatives is the MUFG Innovation Garuda No. 1 Limited Investment Partnership (MUIP Garuda Fund), a USD 100 million investment fund established in collaboration with MUFG and MUIP. The fund is dedicated to support the growth of startups in Indonesia, particularly in the digital and fintech sectors. It targets startups in the Series A stage and beyond, with an average investment of USD 5 million per startup. MUIP Garuda Fund's strategic goal is to drive startup expansion while fostering stronger business collaborations between Danamon and digital startup players across Indonesia.

Ryusuke Hirota, Director overseeing Southeast Asia investments at MUIP, underscored MUIP Garuda Fund’s critical role in nurturing Indonesia's startup ecosystem. "With a total allocation of USD 100 million, MUIP Garuda Fund is focused on investing in startups at the Series A stage and beyond. This initiative aims to stimulate the growth of Indonesia’s startup ecosystem, including through fostering business synergies that enhance networks, boost digital capabilities, and broaden collaboration with fintech players across the country."

Danamon together with MUFG and MUIP, remains committed to identifying high-potential startups for investment through MUIP Garuda Fund. A key initiative supporting this effort was the Danamon Investment Matching Fair held on 22 October 2024. The event brought together over 50 growing startups and are interested in collaborating with Danamon and Adira Finance. During the fair, in-depth evaluations were conducted to identify which startups qualified for funding and strategic support from MUIP Garuda Fund.

Jin Yoshida, Global Alliance Strategy Director, PT Bank Danamon Indonesia Tbk stated, "Danamon, MUFG, and MUIP are steadfast in our commitment to fostering the growth of startups in Indonesia through MUIP Garuda Fund. We are also actively facilitating investment matching, as demonstrated by the Danamon Investment Matching Fair, which is part of our broader strategy to expand the digital business ecosystem and enhance collaboration within the financial sector. Through this initiative, we aim to identify the opportunity to invest in startups that show the potentiality for growth and success."

To further engage with a broader range of startups and introduce MUIP Garuda Fund, Danamon also participated in the Tech in Asia (TIA) Conference 2024, one of Southeast Asia's largest gatherings of over 3,000 entrepreneurs, investors, and innovators from around the globe. Through its participation, Danamon aims to showcase its comprehensive financial solutions tailored for startups, while fostering collaboration opportunities that can accelerate their business growth and success.

At the Tech in Asia Conference 2024, Danamon, alongside with MUFG, Adira Finance, Home Credit Indonesia, and Zurich, presented a range of digital-based services aimed at empowering startup businesses. These services include digital payment solutions like API-based QRIS and Direct Debit, which was designed to enhance operational efficiency, streamline financial transactions, and bolster startups' digital capabilities. For instance, Danamon's API-based products enable startups to seamlessly integrate banking systems into their platforms, providing faster and more secure payment solutions.

Adira Finance showcased Adiraku, their mobile app tailored to streamline the process of applying for motorcycle, car, as well as cash loans and ensuring a fast, secure, and user-friendly experience, while Home Credit Indonesia introduced My Home Credit app, offering financial solutions such as business capital and loans without the need for credit cards, all with competitive interest rates. Zurich presented LiveWell, an innovative digital health platform designed to support users' overall well-being by addressing their physical, mental, social, and financial health.

For startups seeking detailed information on digital-based banking services and how to leverage collaboration opportunities with Danamon and its group of companies, they are invited to visit the Danamon and MUIP booths at the Tech in Asia Conference 2024, scheduled for 23-24 October 2024, or visit the website at bdi.co.id/garudafund.

###

For media inquiries, please contact: