Abstract At criticality, discrete quantum-gravity models are expected to give rise to continuum spacetime. Recent progress has established the functional renormalization group method in the context of such models as a practical tool to study their critical properties and to chart their phase diagrams. Here, we apply these techniques to the multi-matrix model with ABAB interaction potentially relevant for Lorentzian quantum gravity in 3 dimensions. We characterize the fixed-point structure and phase diagram of this model, paving the way for functional RG studies of more general multi-matrix or tensor models encoding causality and subjecting the technique to another strong test of its performance in discrete quantum gravity by comparing to known results.