India-based Jio Financial Services (JFS) and American investment management company BlackRock have signed an agreement to form a 50-50 joint venture (JV) dubbed Jio BlackRock to offer investment solutions to investors in India.
Both parties expect to make an initial investment of $150m each in the asset management services JV.
Jio BlackRock will begin its operations following the receipt of regulatory and statutory approvals.
According to BlackRock, the new JV will bring together the capabilities and trusted brands of both companies to provide technology-driven access to affordable and cutting-edge investment solutions for millions of investors in the country.
Jio Financial Services president and CEO Hitesh Sethia said: “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.
”Jio BlackRock will be a truly transformational, customer centric and digital-first enterprise with the vision to democratise access to financial investment solutions and deliver financial well-being to the doorstep of every Indian.”
In the newly formed joint venture, BlackRock’s proficiency and skilled workforce in investment management, risk management, product excellence, operations, scale, and market intelligence will be combined with Jio Financial’s in-depth understanding of the local market, digital infrastructure, and strong execution capabilities.
The partnership will bring a new player to the Indian market with a distinctive combination of scope, scale, and resources, said BlackRock.
Besides, the companies intend to democratise access to investment solutions for investors in India and revolutionise the country’s asset management industry through a digital-first offering.
BlackRock APAC chair and head Rachel Lord said: “India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways.
“We are very excited to be partnering with JFS to revolutionise 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.”
