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Jio financial services: Asset Management firm news

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Jio Financial Services, the demerged financial lending arm of Reliance Industries, 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.

“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.

“The new player would expand the market and benefit the customer, but ultimately it will be the returns that decide the success of the fund house,” said Balasubramanian.

Incidentally, this is BlackRock’s second outing in the Indian MF industry. It quit a venture with DSP, called DSP BlackRock Investment Managers, in 2018 on the ground that, being a minority stakeholder with 40% equity, it was not able to integrate the business onto its operating platform.

About Jio Financial Services

Jio Financial Services is a financial services company that was created by Reliance Industries in 2022. The company is a holding company for six other companies:

  • Reliance Industrial Investments and Holdings (RIIHL)
  • Reliance Payment Solutions
  • Reliance Retail Finance
  • Jio Payments Bank
  • Jio Information Aggregator Services
  • Reliance Retail Insurance Broking Ltd.

Jio Financial Services offers a range of financial products and services, including:

  • Consumer loans
  • Small business loans
  • Insurance products
  • Wealth management services
  • Payments and remittances

The company is targeting a large customer base in India, and it is expected to grow rapidly in the coming years. In 2023, Jio Financial Services was valued at about USD 21 billion, making it the third largest non-banking financial company (NBFC) in India.

The CEO of Jio Financial Services is Hitesh Sethia, who was appointed to the position in 2022. Sethia has a long history in the financial services industry, and he has held senior positions at companies such as Goldman Sachs and Morgan Stanley.

Jio Financial Services is a well-funded and well-positioned company, and it is expected to play a major role in the Indian financial services sector in the coming years.

Here are some of the key facts about Jio Financial Services:

  • Founded in 2022 by Reliance Industries
  • Headquarters in Mumbai, India
  • CEO: Hitesh Sethia
  • Financial products and services: Consumer loans, small business loans, insurance products, wealth management services, payments and remittances
  • Customer base: Targetting a large customer base in India
  • Valuation: USD 21 billion in 2023
  • Third largest NBFC in India

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