Reliance to hive off and list financial services business • TechCrunch

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India’s Reliance will divest and list its financial services, a move it said would allow the oil-to-telecom giant to enter and expand into financial services such as its consumer and commercial lending business as well as build fintech “for all Indians”.

Reliance Industries, which is run by billionaire Mukesh Ambani, said in a statement that it will incubate and acquire joint ventures in the new unit, called Jio Financial Services, to expand its offering to add insurance, payments, digital brokerage and assets. Management.

It plans to offer lending based on its own data analytics to complement and supplement traditional credit bureau-based underwriting. The company already does some lending through its wholesale business to merchants and consumers through its retail stores.

Reliance Industries, with combined revenue of more than $100 billion, operates the nation’s largest communications network with more than 420 million subscribers and operates the nation’s largest retail chain with more than 16,000 stores.

A fintech executive, who spoke on condition of anonymity for a neighboring company, said Reliance could hypothetically use its brand name to raise capital at the lowest cost in the country and then disburse the loans and generate healthy profits. If so, the executive said, Jio Financial Services could become a nuisance for companies like Tata Capital and Bajaj Finance.

“JFS will be a truly transformative, customer-focused digital financial services organization that delivers simple, affordable, innovative and intuitive financial services products to all Indians,” Ambani said in a statement released late Friday.

“JFS will be a technology-enabled company, offering financial products digitally by leveraging the nationwide multichannel presence of Reliance’s consumer businesses. JFS is uniquely positioned to seize multiple growth opportunities in financial services to bring millions of Indians into formal financial institutions. “.

The company said that each Reliance shareholder would receive one share in the new company for every share held in the parent company. The company did not say when it will list Jio Financial soon.

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