Sebi approves Jio Financial-BlackRock mutual fund joint venture

Market regulator Securities and Exchange Board of India (Sebi) has granted approval for the proposed $300 million mutual fund joint venture between Jio Financial Services and BlackRock.

Jio Financial Services will invest $150 million to own 50 per cent of the venture, with BlackRock holding an equal stake.

The joint venture aims to bring out varied and innovative investment channels that would suit the differing needs of the Indian investor.

The option to choose from among a number of investment options will make investing easier for customers, says a release issued by Jio Financial. 

Mutual fund business has seen impressive growth in India with combined assets under management of Rs53.40 lakh crore as on March 2024. With 44 mutual fund companies operating in the country, the Indian mutual fund industry continues to expand its assets portfolio.The joint venture hopes to leverage the partners’s strengths to offer innovative, digital technology-driven solutions to drive business.

Established in 1999 as Reliance Strategic Investments, the company was renamed as Jio Financial Services Limited (JFSL) in 2023 after a demerger with Reliance Industries. 

The company operates through subsidiaries like Jio Finance Ltd and Jio Payments Bank to offer a range of financial services, including loans, savings, UPI payments, and digital insurance.

Jio Financial Services reported net profit of Rs1,604.55 crore on the 2023-24 financial year against Rs31.25 crore in the previous financial year while its revenue climbed to Rs1,853.88 crore in FY25 from Rs41.63 crore in FY24.