After the success of Jio Mukesh Ambani led, Jio Financial Services is now ready to enter into another consumer-driven business of mutual funds.
Reliance Industries has been undergoing a significant transformation under Mukesh Ambani’s leadership for over a decade. A company led by him is preparing to make its mark on India’s mutual fund market through a joint venture between Jio Financial Services and BlackRock, the world’s largest asset manager. Building on its expertise and access to vast consumer data, the venture aims to tap into the growing investment habits of Indians and expand the distribution reach of the mutual fund industry.
Mukesh Ambani Big Expansion Plan
Jio Financial Services Ltd., Reliance’s non-banking financial arm, was demerged from its parent company in July 2023. It works in secured and unsecured lending, digital equipment leasing, supply chain financing, insurance broking, payment banking, and gateway services. Now, the company is preparing to enter India’s fast-growing mutual fund industry.
Jio Financial Joint Venture with BlackRock
The joint venture between Jio Financial Services and BlackRock is set to revolutionize the mutual fund landscape in India. With both companies holding a 50:50 partnership, the venture has received in-principle approval from the Securities and Exchange Board of India (SEBI). Announced in July 2023, this collaboration aims to offer innovative investment solutions, leveraging BlackRock’s global expertise and Jio’s strong consumer base and distribution network in India.
SEBI Approves JV Of Jio Financial & Blackrock
Jio Financial Services in a regulatory filing to the stock exchanges, said, “Please note that SEBI vide letter dated October 3, 2024 has granted in-principle approval to the Company and BlackRock Financial Management Inc to act as co-sponsors and set up the proposed mutual fund. The final registration approval will be granted by SEBI subject to fulfilment by the Company and BlackRock of the requirements set out in the said letter.’’
According to the ANI report, together, the partnership will introduce a new player to the Indian market with a unique combination of scope, scale, and resources. JFS and BlackRock are targeting an initial investment of US$150 million each in the joint venture.