Summary
Bank of America agreed to acquire up to 49.9% in Jio Credit, the wholly-owned non-bank lending arm of Jio Financial Services, through a Rs 18,268 crore (~$1.9 billion) joint venture deal. The US bank will initially take a 26.5% equity interest via preferential allotment, with the stake potentially rising to 49.9% through the exercise of warrants, subject to approvals. Jio Credit, which began operations two years ago, reported AUM of Rs 30,667 crore as of June 30, 2026. Shares of Jio Financial Services rose over 3% on the announcement.
Key Facts
- BofA to acquire up to 49.9% of Jio Credit; initially 26.5% via preferential allotment, rising via warrants
- Deal value: Rs 18,268 crore (~$1.9 billion / US$1.9B)
- Jio Credit AUM: Rs 30,667 crore as of June 30, 2026 (over $3 billion in two years)
- Digital-first NBCC offering lending products; expanding across India's credit market
- JV combines Jio's digital reach with BofA's global financial services expertise
- BofA CEO Brian Moynihan: India "one of the world's most important growth markets"
- RIL Chairman Mukesh Ambani: partnership a "pivotal milestone" in democratizing responsible credit
- Part of surge in large foreign investments in Indian financial sector (MUFG-Shriram, Emirates NBD-RBL, SMFG-Yes Bank)
- Jio Financial also has JVs with BlackRock (asset/wealth mgmt) and Allianz (insurance)
- Jio Financial debuted 2023 after demerger from Reliance Industries
Why It Matters
The BofA-Jio Credit deal is a landmark foreign investment in Indian fintech, pairing the world's largest bank with the Reliance-backed digital lending arm. It signals strong global confidence in India's credit market and the "democratization of responsible credit" through digital-first NBFCs. The deal is part of a wave of foreign financial institutions entering India via partnerships (MUFG-Shriram, Emirates NBD-RBL, SMFG-Yes Bank). It also shows how Jio Financial is building a full-stack financial services empire through global JVs across lending, asset management, and insurance.
Sources
- https://economictimes.indiatimes.com/markets/stocks/news/jio-financial-shares-in-focus-as-bank-of-america-set-to-acquire-50-stake-in-jio-credit-for-rs-18268-crore/articleshow/133197203.cms
- https://www.businesstoday.in/markets/ipo-corner/story/navi-mulls-for-rs-3000-crore-ipo-sachin-bansals-fintech-firm-eyes-2-billion-valuation-548987-2026-08-13