Jio Leasing Services Ltd (JLSL), a subsidiary of Jio Financial Services, plans to purchase buyer premises tools, gadgets and telecom tools value $4.32 billion from Reliance Retail over the following two monetary years, in keeping with a postal poll discover (PDF) despatched to shareholders searching for approval of the deal.
JLSL is coming into the enterprise of working a Device-as-a-Service (DaaS) mannequin — it’ll lease telecom gadgets together with related companies to prospects of Reliance Jio Infocomm. Reliance Retail, valued at about $100 billion Reliance Industries in 2023, will promote the gadgets to JLSL at value plus margin.
The deal will probably be one of many largest tools transactions within the Indian telecom sector. By shifting to a leasing mannequin by way of JLSL, Jio goals to make it extra reasonably priced for purchasers to get entry to the newest 5G gadgets and entice extra subscribers to its community.
The transaction will probably be unfold over the monetary years ending March 2025 and March 2026.
Jio Financial Services was a little-known, non-bank monetary subsidiary of Reliance Industries till the conglomerate demerged the unit and listed it final yr. Reliance nonetheless owns greater than 80% of the corporate.
Jio Financial Services additionally plans to supply its cost aggregator and gateway companies to Jio Platforms and Reliance Retail, in keeping with the discover.
The deal signifies Jio Financial Services’ rising curiosity in companies past lending. Via the DaaS mannequin, the corporate is planning to lease gadgets like laptops and its cellular hotspot AirFiber to companies.
