MUFG said in talks to invest $200 million in Ant-backed Indonesia fintech Akulaku

Mitsubishi UFJ Financial Group is in talks to invest about $200 million in Akulaku, an Indonesian online lender backed by Jack Ma's Ant Group, according to people familiar with the matter.

Tomohiro Ohsumi/Bloomberg

MUFG, as Japan's biggest lender is known, is negotiating the terms of a potential financing for Akulaku as it seeks to expand its presence in the Southeast Asian nation, the people said. The funds could give the startup a valuation of around $1.5 billion, the people said, asking not to be identified because the matter is private.

An investment by MUFG in Akulaku would add to the capital raised by the company, including a $100 million fundraising from Thailand's Siam Commercial Bank earlier in the year, the people said. Other investors including private equity firms have shown interest in investing in Akulaku, the people said.

Considerations are ongoing and talks could still fall apart, the people said. Representatives for Akulaku and MUFG declined to comment.

Founded in 2014, Akulaku offers digital banking, consumer credit, digital investment and insurance brokerage services, according to its website. It operates in Indonesia, Vietnam, Malaysia and the Philippines, the site shows. Earlier in the year, Akulaku had been considering a U.S. listing via a merger with a blank-check company that could have valued the combined entity at about $2 billion, people familiar with the matter said at the time.

MUFG has been expanding in Southeast Asia to tap into the region's growth potential and young population. Last month, Bank of Ayudhya, a Thai banking unit of MUFG, said it will acquire the consumer finance businesses of Netherlands-based Home Credit in Indonesia and the Philippines for about 474 million euros ($500 million).

— With assistance from Komaki Ito and Fathiya Dahrul.