Jio Financial Services Bolsters NBFC Arm With INR 1,000 Cr Infusion

Fintech major Jio Financial Services (JFS) has infused INR 1,000.24 Cr (about $117 Mn) in its NBFC arm Jio Finance Limited (JFL) to further expand its offerings. 

In an exchange filing, JFS said that it subscribed to and has been allotted 1.73 Cr equity shares worth INR 10 each of its wholly owned subsidiary JFL today. The funds will be used by the subsidiary to “finance its business operations”. 

Incorporated by Reliance in 2000, JFL was rechristened from its erstwhile name Reliance Retail Ventures Limited back in August 2023. 

The NBFC provides home loans, home loan balance transfer, loans against mutual funds, among others, to its customers. 

In its investor presentation for Q3 FY25, JFS said that the NBFC’s assets under management stood at INR 4,199 Cr as against INR 1,206 Cr in Q2 FY25. It said JFL was operational in seven cities via nine offices then.

While the company’s disclosures don’t make it absolutely clear on what the immediate plans of JFL are, JFS MD and CEO Hitesh Sethia said during the Q3 analyst call that the NBFC will focus on driving its loan book growth via a combination of internal synergies and external partnerships. 

“For instance, JFL’s home loan products are being distributed by the physical network of our group ecosystem, as well as through collaborations with external property portals and real estate developers,” he said. 

Besides, the company has been exploring partnerships with wealth management firms and banks to grow its loan against shares and mutual funds segment. 

JFS’ Fintech Dominance Bid

The investment in the credit business is part of JFS’ plans to establish itself in the fintech segment with a range of offerings. The company recently increased its stake in its subsidiary Jio Payments Bank to 100% by buying out SBI’s stake for INR 104.54 Cr. 

Besides, it has also tied up with BlackRock to enter the mutual funds space with Jio BlackRock Asset Management. Both the parties cumulatively invested INR 117 Cr earlier this year in the venture. 

JFS also plans to enter the wealth management and brokerage space in partnership with BlackRock. 

Meanwhile, the company is now said to be in discussions with German insurer Allianz SE to embark on its second India journey after severing ties with Bajaj recently. 

As of now, the fintech company houses consumer-facing entities like Jio Finance, Jio Insurance Broking, Jio Payment Solutions, Jio Finance Platform and Service, among others.

On the financial front, it posted a consolidated net profit of INR 294.78 Cr in Q3 FY25, a mere 0.3% increase from INR 293.82 Cr in the year-ago quarter. Its revenue from operations rose 5.7% to INR 438.35 Cr during the quarter under review from INR 414.33 Cr in Q3 FY24.