Bank of America and Jio Financial Services Expand Digital Lending

By Milan Rojan

Bank of America has agreed to acquire up to a 49.9% stake in Jio Credit Limited, the wholly owned lending subsidiary of Jio Financial Services, through a joint venture aimed at expanding access to financial services in India.

Mukesh D. Ambani, Chairman and Managing Director of Jio Financial Services, said: “Our strategic partnership with Bank of America is a pivotal milestone in this mission.”

The agreement will see Bank of America invest $1.9 billion, through a preferential allotment of equity shares and warrants. Jio Financial Services will remain a shareholder in the business, while the Jio Credit board will have equal representation from both companies.

Brian Moynihan, Chair and Chief Executive Officer of Bank of America, said: “India is one of the world’s most important growth markets, and this investment reflects our confidence in its future.”

Jio Credit has built assets under management of $3.2 billion, within two years of beginning operations. The digital-first lender has focused on providing lending products across India, with plans to expand its portfolio as demand for credit grows.

The partnership has combined Jio Financial Services’ digital reach and understanding of the Indian market with Bank of America’s global financial services expertise. The companies have said the venture will focus on areas including digital access, credit delivery, governance, risk management and technology.

Jio Credit’s existing management team will continue to oversee its strategy and operations, while the company will remain consolidated as a subsidiary in Jio Financial Services’ financial reporting.

The transaction has positioned the two firms to pursue growth opportunities across India’s expanding digital lending and financial services market.