Jio Financial eyes Rs 36,000 crore deal with Reliance Retail

New Delhi, May 24, 2024.

Jio Financial Services (JFS) is eyeing a deal worth Rs 36,000 crore with the retail arm of Reliance Industries (RIL), as it plans to step into the device leasing business, as per a postal ballot notice from the company.

According to the proposal, a unit of JFS, named Jio Leasing Services, will acquire telecom equipment and devices, including routers and cell phones. The approval from shareholders is still pending for the proposal.

Jio Leasing Services aims to enter the operating lease business using a Device-as-a-Service (DaaS) model.

In this model, businesses or individuals lease goods along with associated services rather than buying them outright. These services usually include installation, maintenance, support, and sometimes updates.

Reliance Retail Limited (RRL) deals with devices and related equipment. Jio Leasing Services will purchase customer premises equipment/devices and telecom equipment from RRL and provide them on operating lease to Reliance Jio Infocomm Limited customers.

The total value of these transactions is estimated to be Rs 36,000 crore over the financial years 2024-25 and 2025-26. The split of purchases across these two years will depend on the demand for services and the deployment pace of broadband wireless devices.