JFS, BlackRock In Talks To Roll Out Private Credit Venture

SUMMARY

BlackRock, is reportedly in discussions with Mukesh Ambani’s Jio Financial Services to establish a private credit venture.

The plans include offering loans to a wide range of businesses, from large corporations to startups.

The firms previously teamed up to launch wealth management and stock broking ventures in India.

The world’s largest asset manager, BlackRock, is reportedly in discussions with Jio Financial Services (JFS) to establish a private credit venture.

The 50:50 partnership will aim to leverage the growing direct lending market in India, with plans to provide loans to a wide range of businesses – from large corporations to startups, Bloomberg reported.

Notably, the joint venture (JV) would mark BlackRock’s fourth collaboration with JFS. However, the report said that no final decision has been made on the new JV and the firms may decide to not go ahead with it.

Inc42 has reached out to JFS and Blackrock for comments on the development. The story will be updated on receiving their responses.

JFS and BlackRock first signed a JV to foray into the Indian asset management space under the brand name Jio BlackRock in 2023. At the time, the two entities said that they would target an initial cumulative investment of $300 Mn in the joint venture.

Recently, the JV received in-principle approval from the Securities and Exchange Board of India (SEBI) to set up the mutual fund business.

In April this year, JFS and BlackRock also teamed up to launch wealth management and stock broking ventures in India.

The latest development comes at a time when JFS has been gradually expanding its services. Recently, the company announced the full-fledged launch of its JioFinance app, which allows users to open digital savings accounts with Jio Payments Bank Ltd, get a consolidated view of their bank accounts and mutual fund holdings, among others. The company claimed that the app is currently being used by 1.5 Mn customers.

From digital lending, banking and insurance to broking and asset management, JFS aims to disrupt the fintech sector in the country by leveraging technology and Jio’s wide customer base.

On the financial front, JFS’ net profit declined 5.7% to INR 313 Cr in Q1 FY25 from INR 332 Cr in the year-ago quarter. Operating revenue rose slightly to INR 418 Cr from INR 414 Cr in Q1 FY24.