Mitsubishi UFJ Financial Group Inc. established a new venture capital unit that will make strategic investments in financial technology startups.
The new unit, MUFG Innovation Partners Co. Ltd., will launch and manage a ¥20 billion fund that will make strategic investments in fintech related startups, as well as promote synergies between the group and such startups.
The fund, which will be established in the second half of January, is backed by commitments from the Japanese financial group's entities.
The fund will invest in areas such as payments, remittance and asset management, The Nikkei reported Jan. 11.
Approximately 30% to 40% of funds will go towards Japanese startups, while the rest will be allocated to startups in the U.S. and Southeast Asia, the publication added. Targets will receive up to ¥2 billion over the fund's planned 10-year span.
As of Jan. 10, US$1 was equivalent to ¥108.30.