Jio Financial Services (JFS) is seeking shareholder approval for its subsidiary, Jio Leasing Services, to acquire equipment worth 360 billion rupees ($4.33 billion) from the retail arm of Reliance Industries. This move is part of JFS's strategy to enter the device leasing business, according to a postal ballot notice.
The proposed acquisition involves telecom equipment and devices, such as routers and cell phones, which will be sourced from Reliance Industries' retail division. Jio Leasing Services plans to lease this equipment to customers of Reliance Jio Infocomm, the telecommunications arm of Reliance Industries. The products to be leased include AirFiber Wi-Fi services, phones, and laptops, enhancing the range of services offered to Jio Infocomm’s customer base.
Entering the device-rental market, Jio Financial will compete with established players like Hewlett Packard and Lenovo. This initiative aligns with JFS's broader strategy to diversify its offerings and capitalize on the growing demand for device rentals in the telecommunications sector.
The voting on the proposed acquisition will conclude on June 22, and the deal is expected to be finalized and implemented in the financial years 2025 and 2026. This strategic move highlights JFS's ambition to expand its portfolio and leverage the extensive customer base of Reliance Jio Infocomm, providing cost-effective solutions for customers while generating recurring revenue streams for the company.
