- Jio BlackRock combines Jio Financial Services’ knowledge and resources and BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India
- Partnership aims to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India
NE BUSINESS BUREAU
MUMBAI, JULY 27
Jio Financial Services Ltd, the demerged financial lending arm of Reliance Industries Ltd, and BlackRock, the world’s largest asset manager, have joined hands to set up an asset management company with a combined investment of $300 million.
On Wednesday, in a joint statement with BlackRock, Jio Financial said that the joint venture (JV), Jio BlackRock, would deliver “tech-enabled access to affordable, innovative investment solutions for millions of investors in India.”
The two partners plan to invest $150 million each in the JV, making it the 44th player in the $44.39 trillion Indian mutual fund industry, which is currently dominated by SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund.
Commenting on this, Rachel Lord, Chair & Head of APAC, BlackRock, said: “India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways. We are very excited to be partnering with JFS to revolutionise India’s asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”
Speaking on this transaction, Hitesh Sethia, President and CEO, JFS, said: “This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products. Jio BlackRock will be a truly transformational, customer centric and digital-first enterprise with the vision to democratise access to financial investment solutions and deliver financial well-being to the doorstep of every Indian.”
The joint venture will launch operations post receipt of regulatory and statutory approvals. The company will have its own management team.
“This has the potential to disrupt the Indian MF market,” said a fund official requesting anonymity. “Jio’s technical know-how and expanding customer base, along with BlackRock’s proven global track record as a fund house, could change the industry dynamic.” He added that the JV would take upwards of 12 months to become operational.
