BlackRock and Jio Finance Jointly Invest INR 117 Cr in Mutual Funds
Following the revelation that the company and its joint venture partner, US-based BlackRock, have invested INR 117 crore in their mutual fund business, Jio Financial Services (JFSL) will continue to be the focus of attention on January 22. BlackRock and JFSL have each purchased 5.85 crore equity shares in Jio BlackRock Asset Management Private Limited, a 50:50 joint venture between the two companies, at a price of INR 10. According to a regulatory filing, this transaction is worth INR 117 crore in total.
In order to obtain approval, Jio BlackRock Asset Management Private Ltd applied to SEBI. An initial investment of INR 82.5 crore each was made in this company by JFSL and BlackRock. 'Jio BlackRock Broking Private Limited' is a wholly owned subsidiary of Jio BlackRock Investment Advisers Private Ltd, a joint venture company of the company, which was established on January 20, 2025, to conduct broking activities subject to regulatory approvals.
Performance of Jio Financial Services in Q3
For the quarter ending December 31, 2024, Jio Financial Services reported a consolidated net profit of INR 295 crore, which was unchanged from the INR 294 crore reported during the same period last year. In the third quarter of FY25, the Mukesh Ambani-backed company reported total sales of INR 438 crore, a 6% increase over the INR 414 crore reported in the same quarter of the previous fiscal year. As of December 31, 2024, the assets under management (AUM) were INR 4,199 crore, up from INR 1,206 crore in the second quarter of FY25.
Developments at Jio BlackRock Asset Management Company
The developments occur at a time when JFS has intensified its fintech strategy. George Heber Joseph was named the first chief investment officer of Jio BlackRock Asset Management Company in December of last year. Additionally, rumours circulated earlier this year that BlackRock and JFS were negotiating the creation of a private lending partnership. By utilising technology, Reliance Jio's extensive client base, and BlackRock's experience in the financial services industry, JFS intends to upend the nation's fintech industry by providing services like digital lending, banking, and insurance, among others.
India’s Fintech Ecosystem Leading the Global Race
In spite of this downturn, the Indian fintech ecosystem is one of the top three globally financed fintech ecosystems in H1 2024, after the US and the UK. According to Tracxn's Geo Semi Annual Fintech India Report for H1 2024, the ongoing funding winter and a number of other geopolitical challenges are to blame for the funding fall. Compared to one in H2 2023, two funding rounds totalling more than $100 million were observed during that time. These include the $120 million Series C funding round raised by lending platform Avanse and the $144 million Series D funding round raised by non-banking lender Credit Saison.
Nitin Konde
