July 26, 2023: Mumbai, India – Jio Financial Services Limited (JFS) and global asset management giant BlackRock have announced an exciting collaboration to form “Jio BlackRock,” a 50:50 joint venture that aims to revolutionize the Indian asset management industry. The joint venture will combine BlackRock’s expertise in investment management, risk management, and technology with Jio Financial Services’ local market knowledge and digital infrastructure to provide tech-enabled access to affordable and innovative investment solutions for millions of Indian investors.
The Indian asset management industry has experienced significant growth in recent years, attracting various new players looking to tap into the country’s thriving market. Jio BlackRock’s entry is expected to intensify the competition in the Rs 44 trillion Indian mutual fund industry, bringing a unique scope and scale to the table.
Jio BlackRock’s mission is to democratize access to financial investment solutions, aiming to bring financial well-being to every Indian. With the convergence of rising affluence, favorable demographics, and digital transformation across industries in India, the joint venture sees an enormous opportunity to reshape the market and transform financial futures.
The joint venture plans an initial investment of US$300 million, with each partner contributing US$150 million. Jio BlackRock aims to leverage BlackRock’s vast expertise in investment and risk management, combined with JFS’s technological capabilities and deep market understanding, to digitally deliver investment products and cater to the evolving needs of Indian investors.
Rachel Lord, Chair & Head of APAC, BlackRock, expressed her enthusiasm about the partnership, stating, “India represents an enormously important opportunity. We are very excited to be partnering with JFS to revolutionize India’s asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”
Hitesh Sethia, President, and CEO of Jio Financial Services also expressed his excitement about the collaboration, highlighting the significance of BlackRock’s participation as one of the largest and most respected asset management companies globally. He emphasized the partnership’s potential to drive the digital delivery of investment products in India.
Jio BlackRock is set to commence operations once it receives regulatory approvals and will function as a customer-centric and digitally-driven enterprise with an independent management team.
As Jio BlackRock aims to empower Indian investors with affordable and tech-enabled investment solutions, it marks BlackRock’s re-entry into the Indian AMC industry after a gap of nearly five years since selling its stake in DSP Mutual Fund in mid-2018.
The joint venture’s introduction comes at a time when India’s mutual fund industry is experiencing increased interest from new players. Recently, Bajaj Finserv joined as the 41st player in the industry, and SEBI is also considering in-principle approval for three additional entities.
With Jio BlackRock’s strong alliance and focus on technological advancements, it is poised to play a significant role in shaping the future of India’s asset management industry, offering millions of investors enhanced access to innovative and affordable investment opportunities.
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