Jio Financial Unit Acquires $4.32 Bn in Telecom from Reliance Retail

Jio Leasing Services Ltd (JLSL), a subsidiary of Jio Financial Services, is set to purchase customer premises equipment, devices, and telecom gear worth $4.32 billion from Reliance Retail over the next two financial years. This transaction, detailed in a postal ballot notice sent to shareholders for approval, marks one of the largest equipment deals in India’s telecom sector.

JLSL will adopt a Device-as-a-Service (DaaS) model, leasing telecom devices and related services to customers of Reliance Jio Infocomm. Reliance Retail, valued at approximately $100 billion in 2023, will sell these devices to JLSL at cost plus margin, ensuring profitability while enabling Jio to offer affordable access to the latest 5G devices. This strategy aims to increase subscriber numbers for Jio’s network.

The transaction will be spread over the financial years ending March 2025 and March 2026, signaling a long-term commitment to enhancing Jio’s service offerings through advanced telecom equipment.

Jio Financial Services, previously a little-known non-bank financial subsidiary of Reliance Industries, gained prominence after being demerged and listed as a separate entity last year. Reliance Industries retains over 80% ownership of Jio Financial Services.

Additionally, Jio Financial Services plans to offer payment aggregator and gateway services to Jio Platforms and Reliance Retail, expanding its portfolio beyond traditional lending. Through the DaaS model, the company will also lease devices like laptops and its mobile hotspot, AirFiber, to businesses.

This acquisition underscores Jio Financial Services’ strategic expansion into diverse business areas, leveraging its financial expertise to support the broader goals of Reliance Industries. By facilitating access to cutting-edge telecom devices, JLSL aims to bolster Jio’s market position and drive growth in India’s rapidly evolving telecom landscape.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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