Jio Financial Services Limited (JFSL), a subsidiary of Reliance Industries, has invested ₹1,000 crore in its wholly owned subsidiary, Jio Finance Limited (JFL). This infusion aims to strengthen JFL’s non-banking financial company (NBFC) operations and expand its loan offerings across India.
📈 Details of the Investment
The investment was executed through the subscription of 1.73 crore equity shares of ₹10 each in JFL. The funds will be utilized to finance JFL’s business operations, including home loans, loans against mutual funds, and other financial products. This transaction is classified as a related party transaction but was conducted on an arm’s length basis, with no involvement from the company’s promoters or group companies .
🏦 Expansion of NBFC Services
JFL, rebranded from Reliance Retail Ventures Limited in August 2023, has been expanding its NBFC services. As of Q3 FY25, JFL’s assets under management (AUM) stood at ₹4,199 crore, a significant increase from ₹1,206 crore in Q2 FY25. The company operates in seven cities through nine offices and plans to further grow its loan book via internal synergies and external partnerships .
🤝 Strategic Collaborations
JFSL has been exploring partnerships with wealth management firms and banks to enhance its loan offerings, particularly in the segments of loans against shares and mutual funds. Additionally, JFSL has increased its stake in Jio Payments Bank to 85.04% by investing ₹85 crore, further consolidating its position in the financial services sector .Inc42 Media
