Jio Leasing Companies Ltd (JLSL), a subsidiary of Jio Monetary Companies, plans to purchase buyer premises gear, units and telecom gear price $4.32 billion from Reliance Retail over the subsequent two monetary years, in accordance with a postal poll discover (PDF) despatched to shareholders looking for approval of the deal.
JLSL is getting into the enterprise of working a System-as-a-Service (DaaS) mannequin — it’ll lease telecom units together with related providers to clients of Reliance Jio Infocomm. Reliance Retail, valued at about $100 billion Reliance Industries in 2023, will promote the units to JLSL at value plus margin.
The deal will probably be one of many largest gear transactions within the Indian telecom sector. By shifting to a leasing mannequin by JLSL, Jio goals to make it extra inexpensive for purchasers to get entry to the newest 5G units and entice extra subscribers to its community.
The transaction will probably be unfold over the monetary years ending March 2025 and March 2026.
Jio Monetary Companies was a little-known, non-bank monetary subsidiary of Reliance Industries till the conglomerate demerged the unit and listed it final 12 months. Reliance nonetheless owns greater than 80% of the corporate.
Jio Monetary Companies additionally plans to supply its fee aggregator and gateway providers to Jio Platforms and Reliance Retail, in accordance with the discover.
The deal signifies Jio Monetary Companies’ rising curiosity in companies past lending. By way of the DaaS mannequin, the corporate is planning to lease units like laptops and its cell hotspot AirFiber to companies.
