MUMBAI, June 24 -- Mitsubishi UFJ Financial Group and its subsidiary MUFG Bank will integrate the operating functions of the Ganesha Fund, an entity that invests in startups in India, with Dragon Funds to consolidate management of the corpus.

MUFG Bank's wholly owned subsidiary Mars Equity and its managed equity funds, collectively referred to as Dragon Funds, will consider setting up a second fund with a target of $600 million, the company said in a statement on Wednesday.

MUFG will consolidate Ganesha's equity investment processes and portfolio management functions within Dragon Funds, strengthening the platform that provides growth capital to global mid- to late-stage technology companies, including those in India, and underscoring t...