Jio Financial Ramps Up for Market Launch with BlackRock JV, Boosts Tech and Leadership Team

Jio Financial Services Ltd is moving forward with its asset management joint venture with BlackRock. The company has appointed key leaders and is developing its technology infrastructure, according to managing director and CEO Hitesh Sethia.

“We expect to get the necessary approvals from the regulator soon and start operations afterward,” Sethia said at the company’s first annual general meeting (AGM) since its listing.

Strategic Partnership with BlackRock

Sethia highlighted that Jio Financial’s understanding of the Indian market, combined with BlackRock’s expertise in asset management, will allow them to offer world-class investment products to Indian consumers, including mutual funds, wealth management services, and broking.

In August 2023, Jio separated its financial services businesses and rebranded as Jio Financial Services. By July 2024, the company got approval from the Reserve Bank of India (RBI) to become a core investment company (CIC). The joint venture with BlackRock was first announced in July 2023 and later expanded in April 2024 to include wealth management and broking services.

“This partnership shows the strong belief both companies have in the growth of the Indian market, especially as household savings in India are increasingly moving into financial products,” Sethia said.

Building a Tech-First Financial Institution

As a modern, digital-first financial services company, Jio Financial’s technology will be a major strength. Sethia noted that the company is not burdened by outdated technology, which allows them to build a flexible, scalable, and cloud-based tech platform.

“Our technology will support a direct-to-customer approach, whether through digital channels or at the point of sale. We will also use data analytics, drawing from credit bureaus, account aggregators, and other sources, to enhance our services,” he added.

Launched in May 2024, the Jio Finance app has already crossed one million downloads. The app currently offers services like loans on mutual funds, savings accounts, UPI bill payments, digital insurance, and recharges, with more products to be added soon, according to Sethia.

Expanding Product Offerings

Jio Financial’s business model is based on four main pillars: borrow, transact, invest, and protect. This includes lending and leasing, payment solutions, insurance broking, mutual funds, and wealth management services.

The company is also expanding its lending business, focusing on secured products such as supply chain financing, loans on mutual funds, and device financing. Additionally, Jio Financial is in the advanced stages of launching home loans, which are currently being tested in beta mode. Other products, like loans against property and loans on securities, are also in the works.