On April 15, Jio Financial Services, part of Reliance Industries, revealed its collaboration with BlackRock, a US-based company, to enhance wealth management and broking services in India.
In a statement submitted to the exchange, the financial entity disclosed a 50:50 joint venture with BlackRock, focusing on wealth management initiatives. This partnership aims to launch a wealth management company and subsequently establish a brokerage firm in India.
The agreement, signed at 6:35 p.m., involves Jio Financial Services, BlackRock, Inc., and BlackRock Advisors Singapore Pte. Ltd. forming a joint venture. Both companies will contribute equally to this endeavor.
This collaboration follows a previous agreement between Jio Financial Services and BlackRock in July 2023. At that time, they committed to invest $150 million each for a 50:50 joint venture, with the goal of entering India’s asset management sector.
The joint venture not only strengthens the relationship between Jio Financial Services and BlackRock but also aims to revolutionize India’s asset management industry with digital-first offerings, providing wider access to investment solutions for Indian investors.
However, the launch of the joint venture is subject to regulatory and statutory approvals, including obtaining a mutual funds license from the Securities and Exchange Board of India (SEBI).
This announcement comes ahead of Jio Financial’s quarterly earnings report scheduled for Friday, April 19. In the previous quarter ending December 2023, the company reported a 56% sequential decline in consolidated net profit, amounting to ₹294 crore. Additionally, consolidated revenue from operations decreased by nearly 32% from the preceding quarter, reaching ₹413.61 crore.
During the December quarter, total expenses increased to ₹98.95 crore from ₹71.43 crore incurred in the September quarter.
On Monday’s trading session, the shares of Jio Financial Services closed approximately 4.57% lower at ₹355.20.
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