Jio Financial Services, the fintech arm of Mukesh Ambani’s Reliance Industries, is selling a 49.9% stake in its NBFC subsidiary, Jio Credit, to Bank of America for Rs 18,268.2 crore ($1.9 billion).
The investment is being made through a mix of equity and warrants, convertible within 18 months.
“Jio Financial Services Limited (JFSL) and Bank of America Corporation (BofA) have signed a definitive agreement whereby BofA will acquire up to a total of 49.9% interest as a joint venture partner in JFSL’s wholly-owned NBFC (non-bank financial company) lending subsidiary, Jio Credit Limited (JCL), through a preferential allotment of equity shares and warrants,” the fintech company said.
As part of the deal, BofA will initially acquire a 26.5% stake in Jio Credit for Rs 6,612.9 crore through a preferential allotment of equity shares. Additionally, it will be allocated 7.6 crore warrants worth up to Rs 11,655.3 crore, with an option to convert them into equity shares within 18 months. Once the warrants are exercised, BofA’s shareholding in Jio Credit will increase to 49.9%.
Why this matters: Jio Credit had Rs 30,667 crore in assets under management as of June 2026. While most NBFC lenders in India have focused on unsecured and personal loans to date, Jio Credit has built its entire loan book around secured loans. The company disbursed loans worth Rs 11,252 crore in Q1 FY27, with a sizable portion to SMEs and corporates. Currently, it offers home loans and loans against property, loans against mutual funds and securities, and business loans.
In his message to shareholders in the company’s annual report for FY26, Hitesh Sethia, managing director and CEO of Jio Financial Services, said that the company will consider entering the unsecured credit segment only after achieving critical scale in secured lending. The joint venture with Bank of America brings the company one step closer to that goal.
The move also comes as competition in the segment intensifies. In February, Bharti Airtel announced an investment of Rs 20,000 crore in its NBFC arm, Airtel Money. The telecom major holds a 70% stake in the NBFC and received the lending licence from the Reserve Bank of India that very month.
Recently, MobiKwik also received approval from the RBI for an NBFC licence, allowing the company to expand into direct lending. The company plans to offer both secured and unsecured loans to consumers and MSMEs.
“The NBFC approval will unlock better unit economics, both on our own books as well as in co-lending, where we’ll be able to partner with more banks and NBFCs. We’ll get better terms in First Loss Default Guarantee (FDLG) and have access to a wider pool of public sector and private banks,” said Upasana Taku, co-founder and CFO of MobiKwik, during Q4 FY26 earnings call.
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