Jio Financial Services Become India's 2nd Biggest NBFC; $20 Billion Valuation On Day 1! (Impact On Fintech Sector?)


Rohit Kulkarni

Rohit Kulkarni

Jul 22, 2023


The fintech companies appear to be worried, courtesy the reports of the impending entry of Jio Financials in the market. An anxious lot of digital lending startups and their investors are said to be watching from the sidelines as Jio Financial Services gets demerged from Reliance Industries. What is worrying fintech players is Reliance Group’s wide reach and its deep pocket.

Jio Financial Services Become India's 2nd Biggest NBFC; $20 Billion Valuation On Day 1! (Impact On Fintech Sector?)

Jio’s Disruptive Entry: The Potential Impact on Financial Services and Fintech Startups

The company’s entry both in retail and telecom segments led to a disruption in these spaces. If the Jio Financials follows the same playbook, it means it will try to take the services to the masses, multiple industry insiders told Economic Times (ET). Reliance Jio changed India’s telecom industry forever with its entry in September 2016. The company announced unlimited 4G data for its customers under its ‘Welcome Offer’, Since then there has been no looking back, and India continues to have one of the lowest internet data rates globally.

It seems to be a wait and watch for most fintech startups as of now. For, none of the fintech founders and investors that ET spoke to went on record, given that Jio itself has not made its business plans public. They are in a wait-and-watch mode, but nervousness is reported to be quite palpable in the sector.

Reliance Group’s Strategic Move: Demerger of Financial Services Business to Form Jio Financial Services

Reliance has announced the demerger of its financial services business into Reliance Strategic Investments as part of its group restructuring. The spun-off entity has been renamed Jio Financial Services, which will be listed soon. The demerger of the financial services business involves a spin-off of Reliance Industries’ 6.1% treasury shares.

This is not the first time that Reliance Group is looking to enter financial services. In 2015, Jio got a payment bank licence. In 2019, the company launched a payment terminal business. In January 2020, it launched UPI payments on the MyJio app.


Rohit Kulkarni
Rohit Kulkarni
  • 1178 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online