According to recent reports, American multinational investment company BlackRock has partnered with Jio Financial Services, the financial services division of Indian tycoon Mukesh Ambani's empire, to introduce a digital-first asset manager in India. The joint venture will be named "Jio BlackRock."

As per the statement released, both BlackRock and Jio Financial Services have committed to investing up to $150 million each in the venture, with the ownership being split equally between the two companies. It's worth noting that BlackRock, being a major player in the investment industry, currently manages assets worth a staggering $9.4 trillion.

The collaboration aims to cater to the growing investor population in India, leveraging the expertise and resources of both companies to provide innovative and accessible investment opportunities in the digital space.

In a LinkedIn post, Larry Fink, chairman and CEO of BlackRock, said, "Today marks a major move for BlackRock as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services, a company built by Reliance Industries Limited."

The joint venture between BlackRock and Jio Financial Services aims to capitalize on the shifting preferences of Indian households concerning their primary assets. Traditionally, real estate and jewelry have been the preferred choices, but there is a noticeable trend among savers who are now incorporating financial instruments into their retirement plans. With this evolving landscape, the partnership seeks to tap into the expanding market of individuals who are increasingly considering financial investments as part of their wealth-building and retirement strategies.

The partnership will “deliver our combined expertise and scale to unlock the power of investing for millions of people in India,” Fink said.

As per analysts' projections, the extensive user base of Ambani's Jio mobile phone network, which holds the largest market share in India, is expected to grant Jio Financial Services access to vast amounts of valuable customer data. This data access is deemed advantageous for the joint venture. Furthermore, it is anticipated that the shares of Jio Financial Services will commence trading in the current quarter.

According to the chief executive of Jio Financial Services, Hitesh Sethia, the joint venure “will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products."

BlackRock is making its second foray into the Indian retail sector with this joint venture, having previously withdrawn from a partnership with the DSP Group in 2018.

Image source: The NY Magazine