Bank of America is set to establish a joint venture with Jio Financial Services in India, acquiring an equity stake of up to 49.9% in the Indian firm’s digital lending subsidiary, Jio Credit, for a total investment of up to INR 18,268 crore, approximately $1.9 billion.
Under the terms of the agreement, Bank of America will initially receive a 26.5% equity stake in Jio Credit through a preferential allotment of shares and warrants. This ownership interest is structured to potentially increase to a maximum of 49.9% should the warrants be fully exercised. The completion of this transaction is contingent upon receiving standard statutory and regulatory approvals.
Following the close of the deal, the board of directors for Jio Credit will comprise an equal number of representatives from both Jio Financial Services and Bank of America. Jio Credit’s day-to-day operations will continue under its current management team, led by managing director and CEO Kusal Roy, and it will remain a consolidated subsidiary under Jio Financial Services’ corporate reporting structure.
Jio Credit, initially launched as JioFinance in summer 2024, expanded its offerings in October of the same year to include a range of loan options. These services encompass home mortgages, commercial financing, secured loans, and supply chain finance. Within its first two years of operation, the digital lending platform has accumulated total assets under management amounting to INR 30,667 crore, equivalent to approximately $3.2 billion, as reported on June 30, 2026.
For Jio Financial Services, the capital generated from this stake sale is designated to fuel an expansion of Jio Credit’s loan portfolio. This expansion is expected to be strengthened by Bank of America’s contributions in “expertise related to financial services, governance, risk management, and technology.”
Jio Financial Services, a Mumbai-based entity that was spun out from conglomerate Reliance Industries in August 2023, operates several other financial services. Its portfolio includes separate payments, leasing, and insurance brokerage subsidiaries. The company also maintains active joint ventures with BlackRock for asset management operations and with Allianz Group for reinsurance services, both of which commenced operations earlier this year.
