Jio Financial Services and BlackRock Team Up for Indian Asset Management Venture
Summary: Jio Financial Services and BlackRock have partnered to enter the Indian asset management market, with both investing $150 million initially. The joint venture, Jio BlackRock, will leverage BlackRock's investment and risk management expertise, JFS' technology capabilities, and market expertise to drive digital delivery of products.
Mukesh Ambani’s Jio Financial Services has teamed with BlackRock. The largest asset manager in the world may now enter the burgeoning Indian asset management market. According to a statement issued by Jio Financial on Wednesday, the first investment from both companies is $150 million.
Driving Digital Revolution
Both Jio and BlackRock will put up to $150 million into the joint venture. The new joint company will be known as Jio BlackRock.
Jio Financial Services, which was recently spun out from Reliance Industries, has been valued by the markets at close to $20 billion, despite the fact that it has yet to establish a footprint in India’s fast-developing financial services sector.
Hitesh Sethia, CEO of JFS stated:
“The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products.”
Eyeing Massive Market
In recent years, the asset management industry in India has expanded rapidly, and it now stands at $440 billion (or 44.3 trillion Indian rupees). With this “digital-first” service, Indian investors would have “tech-enabled access to affordable, innovative investment solutions,” as the company put it in a release.
BlackRock hopes to capitalize on India’s expanding asset management sector with this new venture, its second effort at doing so. The American investment management firm departed India in 2018 after 10 years of operation, selling its 40% holding to partner DSP Group. India has an “enormously important opportunity,” according to Rachel Lord, head of Asia-Pacific at BlackRock.
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