Jio Financial Services plans a Rs 36,000 crore deal with Reliance Retail.

Mumbai, – In a strategic move, Mukesh Ambani’s Jio Financial Services (JFS) plans to seek shareholder permission for a significant acquisition from Reliance Retail Ltd, Reliance Industries’ retail arm. Jio Leasing Services Limited (JLSL), JFS’ leasing company, intends to enter into the device leasing market by purchasing telecom equipment and devices for Rs 36,000 crore ($4.33 billion).

According to a postal ballot notification sent to shareholders, JLSL plans to enter the operational lease market using a device-as-a-service (DaaS) model. Instead of owning equipment outright, this new service model allows organizations and people to lease it together with accompanying services such as installation, maintenance, support, and upgrades. This technique is designed to improve consumer convenience while also providing a consistent revenue stream for JLSL.

Reliance Retail, a step-down company of Reliance Industries, has a large stake in the transaction. Reliance Industries Ltd. (RIL) owns 83.56% of Reliance Retail Ventures Ltd., which owns all of Reliance Retail. The retail arm is well-known for dealing in a wide range of devices and communications equipment, and its vast volume allows it to buy these goods at cheap prices.

According to the proposed agreement, JLSL will purchase customer premises equipment and telecom devices from Reliance Retail Ltd. (RRL). These gadgets will thereafter be leased to users of Reliance Jio InfocommLtd. under the DaaS concept. This setup will comprise devices often used for broadband wireless access and other telecom services, such as routers and cell phones.

The transactions are expected to occur over two financial years, 2024–25 (FY25) and 2025–26 (FY26), with a total monetary value of Rs 36,000 crore. The particular purchase split over the next two years will be determined by service uptake and the rate at which broadband wireless devices are deployed.

JFS, which was spun off from the Mukesh Ambani-led Reliance Group last year, works in four major segments: lending and leasing, payments, protection, and investments. Within the lending and leasing section, JFS has begun vendor financing and intends to expand into home loans, loans against property, and loans against mutual funds. According to an investor presentation, the DaaS model will broaden JFS’s product offerings by focusing on AirFiber services, phones, laptops, solar panels, and electric vehicle batteries.

The planned transaction demonstrates JFS’ intention to become a major participant in the device leasing market, competing with established players such as Hewlett Packard and Lenovo. Voting on the proposed merger will take place on June 22, and if authorized, it will dramatically strengthen JFS’s position in the tech leasing business.

This move not only increases the synergy between the many parts of the Reliance conglomerate, but also corresponds with the group’s overall objective to integrate and optimize its diversified business operations.

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