SEBI Approves $300 Million Mutual Fund Venture Between Jio Financial and BlackRock
The financial services arm of Reliance Industries, Jio Financial Services, has got regulatory approval from SEBI for a billion-dollar joint venture with the global investment monolith BlackRock. The latter will invest $150 million, thereby going in for an equal stake in the new mutual fund business. The other half of the capital will be invested by Jio Financial Services.
Through this collaboration, new and innovative investment avenues are expected to hit the Indian market and serve the diverse needs of investors in a more organized manner. It will make investment easy for a lay customer through various choices. The merger between Jio Financial and BlackRock will, therefore, be oriented toward creating digital, technology-driven solutions that promise to revolutionize the way Indians invest.
India’s mutual fund industry has been on a tear, with assets under management touching a phenomenal Rs.53.40 lakh crore as of March 2024. Already 44 mutual fund companies are in the market, and now with the Jio Financial-BlackRock association rearing to begin, this is only poised to take even more significant strides.
Formerly known as Reliance Strategic Investments, Jio Financial Services had been renamed after the company split up with Reliance Industries in 2023. As of now, the company has been running for more than two decades since its inception in 1999, operating through subsidiaries by offering loans, savings, UPI payments, and digital insurance under Jio Finance Ltd and Jio Payments Bank.
Going by the last reported figures, the past year has marked a turning point for Jio Financial Services with an enormous increase in its profits. The company’s net profit posted in the 2023-24 year was Rs.1,604.55 crore, huge from Rs.31.25 crore the firm reported last year. The firm’s revenue also surged to Rs.1,853.88 crore for FY 2024-25 from only Rs.41.63 crore in FY 2023-24. Now, using recent financial success as a springboard, Jio Financial is well-positioned to make an even greater impact on the mutual funds space via this joint venture.
