Jio Financial, Bank of America Forge $1.9 Billion Credit Venture
The partnership will give Bank of America a 49.9 per cent stake in Jio Credit and strengthen its presence in India's rapidly expanding lending market.
MUMBAI, Aug 14: Jio Financial Services and Bank of America are joining hands to expand digital lending in India through a major investment in Jio Credit, marking a significant entry by the US banking giant into the country’s growing consumer credit market.
Under the proposed arrangement, Bank of America is set to invest up to $1.9 billion for a 49.9 per cent stake in Jio Credit, the lending arm of Jio Financial Services. The transaction includes an initial cash investment of about $693 million for a 26.5 per cent holding, while the remaining interest is linked to convertible warrants.
The partnership combines Jio Financial’s digital infrastructure and understanding of Indian consumers with Bank of America’s global financial expertise. The venture is expected to focus on expanding credit offerings and building a stronger presence in India’s rapidly developing digital financial-services ecosystem.
The deal also represents a major strategic endorsement of Jio Financial’s lending ambitions. Jio Credit’s loan book reportedly more than doubled during the previous financial year, highlighting the rapid expansion of the business.
For Bank of America, the investment provides an opportunity to participate directly in India’s expanding credit market while partnering with a company backed by the Reliance Group.
The transaction comes as India’s financial sector undergoes rapid digitisation, with technology-driven lending platforms gaining greater access to consumers and small businesses.
The proposed partnership could therefore strengthen competition in India’s digital credit segment while giving Jio Financial access to international expertise in areas such as risk management and financial services.
