Japan's MUFG Bank Ltd. and Israel-based Liquidity Capital MC Ltd. will set up a debt financing business for startups in Singapore.
The Mitsubishi UFJ Financial Group, Inc. subsidiary entered into a joint venture agreement with the Israeli financial technology firm to launch a U$80 million debt fund to offer financing to startups in Asia-Pacific. Under the agreement, MUFG Bank and Liquidity Capital will establish a joint venture, Mars Growth Capital Pte. Ltd., which will set up the debt fund.
The establishment of Mars Growth Capital and the debt fund and launch of the financing business are expected to take place in 2020.
Liquidity Capital uses a credit scoring model based on AI technology and financial and accounting data from client bank accounts, accounting systems and CRM information captured through its API technology to forecast future earnings and cash flow. The firm is leveraging these strengths to develop financial solutions for startups, which may not have ready access to debt financing.
Mitsubishi UFJ Financial invested in Liquidity Capital's digital technology and future growth potential in 2019 through its corporate venture capital Mitsubishi UFJ Innovation Partners Co. Ltd.