Jio Financial Services To Roll Out Device-as-a-Service For Corporate Financing
Jio Financial Services, a subsidiary of Reliance Industries, is set to get into corporate financing with the introduction of Device as a Service (DaaS). This financing model will enable businesses to lease devices like airfiber, phones, and laptops, offering a fresh approach to asset management and preserving essential cash flow.
During a recent investor presentation, Jio Financial Services mentioned the numerous benefits of DaaS. By opting for leasing over outright purchases, companies can mitigate risk through reduced asset ownership and leverage customer insights for targeted cross-selling. The move aligns with Relaince Chairman Mukesh Ambani's vision to address critical gaps in India's financial services landscape.
With a keen eye on market dynamics and recent regulatory changes by the Reserve Bank of India (RBI), Jio Financial Services is initially concentrating on secured products. The company said it will look to navigate the evolving financial landscape by providing finance and operating leases for secured assets. In the pipeline are plans to expand offerings to include home loans and unsecured loans.
Despite a challenging third quarter that witnessed a 56 per cent drop in consolidated profit after tax, Jio Financial Services seems proactive. The company, which reported a consolidated net profit of Rs 668 crore in the second quarter and Rs 1,294 crore for the nine months ending December, is expanding its reach through partnerships. Currently boasting 27 tie-ups with general and life insurers, Jio Financial Services is looking to work on its growth.
In a parallel development, the joint venture between Jio Financial Services and BlackRock has applied for a mutual fund license with the Securities and Exchange Board of India (Sebi). The application, submitted by the end of 2023, is currently under Sebi's consideration. This joint venture has been established with a USD 150 million investment from each party.
