BlackRock & Jio Financial To Launch Wealth Management in India

Mumbai-based Jio Financial Services (JFS) and US asset management firm BlackRock (BLK) have announced their intention to establish wealth management and brokerage services in India. As per the filing made with the National Stock Exchange of India, the joint venture will be equally divided between the two firms, thereby resulting in the inception of two separate companies. The proposed structure is similar to the previous agreement announced in July 2020, which resulted in a suite of asset management services for the Indian investment community. The investment of $300 million in this current joint venture will leverage JFS's digital infrastructure capabilities, local market knowledge, and robust execution capabilities.

JFS, formerly a subsidiary of Reliance Industries, presently offers retail and business banking services, including a digital banking app, loans, insurance options, and merchant-focused payment solutions. The new venture, subject to regulatory approval, will expand the partnership's offerings to include regional wealth management and brokerage services. While the exact nature of the proposed services remains unclear, this initiative is expected to provide a significant boost to India's fast-emerging retail investor market, particularly given BlackRock's current standing as the world's largest asset manager.