Amid Super App Push, Jio Financial Services To Raise INR 15,825 Cr

SUMMARY

Over a month after announcing its plans to raise INR 15,825 Cr (about $1.8 Bn) from its promoter group, JFS has raised 25% of the round

The fintech major has allotted 50 Cr warrants at an issue price of INR 316.5 apiece to Sikka Ports & Terminals and Jamnagar Utilities & Power Pvt Ltd

While JFS hasn’t disclosed the reason behind the fundraise, the funding comes at a time when it is putting its fintech super app plans in motion

Update | September 3, 3:07 PM

Over a month after announcing its plans to raise INR 15,825 Cr (about $1.8 Bn) from the members of its promoter group, fintech major Jio Financial Services (JFS) has raised INR 3,956.3 Cr ($449.3 Mn), or 25% of the round.

In an exchange filing, the company said that it allotted 50 Cr warrants at an issue price of INR 316.5 apiece to Sikka Ports & Terminals and Jamnagar Utilities & Power Pvt Ltd.

While 25 Cr shares were allotted to Sikka Ports for INR 1,978.1 Cr, the remaining warrants were allotted to Jamnagar Utilities for the same amount.

Shares of the company were trading 0.18% higher at INR 312 on the BSE.

Original | July 30, 6:33 PM

Fintech major Jio Financial Services (JFS) is looking to raise INR 15,825 Cr (about $1.8 Bn) via a private placement of convertible warrants to members of its promoter group, Sikka Ports & Terminals and Jamnagar Utilities & Power Pvt Ltd.

In an exchange filing, the company said that its board approved the issuance of up to 50 Cr warrants for INR 316.5 each.

“Warrants are convertible into fully paid-up equity shares of the company, in one or more tranches, at any time on or before the expiry of 18 (eighteen) months from the date of allotment and the unconverted warrants shall lapse, and the amount paid by the warrant holder on such warrants shall stand forfeited,” the filing read.

Following the investment, Sikka Ports’ shareholding in JFS will increase to 4.65% and Jamnagar Utilities will hold 5.52% stake in the company. The timeline for the completion of the round is yet to be announced.

While JFS didn’t disclose the reason behind the fundraise, the funding comes at a time when it is putting its fintech super app plans in motion.

The company’s JioFinance app offers bill payments, RuPay credit card Linkages, digital savings account, loans, mutual fund investments, digital gold investments, insurance, and more.

Over the past few months, JFS increased its shareholding in its banking arm to Jio Payments Bank and also entered the asset management space via its joint venture (JV) with BlackRock.

The company has formed multiple JVs with BlackRoc. Last month, its JV with the global asset management company got SEBI nod to operate as a brokerage.

“On the digital front, the JioFinance app is rapidly growing as our central digital hub for retail financial products. You will hear from us in the days to come regarding upcoming enhancements to the app, which will make it even more intuitive and intelligent. The aim, really, is to provide a seamless, hyper-personalised platform for both our own offerings as well as products from other well-known financial brands,” JFS MD and CEO Hitesh Sethia said during the company’s Q1 earning call.

On the financial front, JFS’ profit grew 4% to INR 324.7 Cr in Q1 FY26 from INR 312.6 Cr in the same quarter of previous year. Operating revenue jumped 48% to INR 612.5 Cr during the quarter from INR 417.8 Cr in Q1 FY25.

How JFS’ $2 Bn Warchest Could Shake Up The Fintech Ecosystem

While the company hasn’t disclosed any specific reasoning behind raising the fresh capital from its promoters, how JFS is currently placed in the fintech ecosystem gives us a glance at what could potential come forth from the company’s ambit.

Insurance Sector Entry: Just days ago, JFS formed a reinsurance joint venture with Allianz Group and is planning further joint ventures in life and general insurance. This capital is crucial for building out the new, capital-intensive insurance business.

Scaling Lending and Asset Management: JFS is actively scaling its presence in consumer lending and asset management. The fresh capital will provide the necessary firepower to expand its loan book, invest in technology and digital infrastructure for its various financial products (Jio Credit, Jio Payments Bank, Jio BlackRock Asset Management). Important to mention that JFS had also infused INR 1,000 Cr in its NBFC arm earlier this year.

Increased Promoter Stake: The preferential issue of warrants will increase the combined stake of the promoter group in JFS, signaling strong confidence and deeper alignment with the company’s growth trajectory.

Enhanced Borrowing Capacity: A stronger capital base can also improve JFS’s creditworthiness, potentially allowing it to borrow at more attractive rates in the future.

As per Inc42’s report, the fintech ecosystem is projected to reach a cumulative valuation of $2.1 Tn by 2030, growing at a CAGR of 18% from $793 Mn in 2024. In this ecosystem, the largest subsector has been lending tech valued at $402 Mn in 2024, which payments is the second largest segment with $182 Mn total addressable market size.

However, insurtech sector is expected to grow faster than payments in the timeframe, reaching a TAM of $307 Mn in 2030 from $119 Bn in 2024. Given the growth trajectories of these segments, JFS’ focus on growing its lending tech business and insurance offerings in the current context makes sense.