Jio Leasing Providers Ltd (JLSL), a subsidiary of Jio Monetary Providers, plans to purchase buyer premises gear, units and telecom gear value $4.32 billion from Reliance Retail over the subsequent two monetary years, based on a postal poll discover (PDF) despatched to shareholders looking for approval of the deal.
JLSL is getting into the enterprise of working a Machine-as-a-Service (DaaS) mannequin — it’ll lease telecom units together with related companies to prospects 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 might be one of many largest gear transactions within the Indian telecom sector. By shifting to a leasing mannequin via JLSL, Jio goals to make it extra reasonably priced for purchasers to get entry to the most recent 5G units and appeal to extra subscribers to its community.
The transaction might be unfold over the monetary years ending March 2025 and March 2026.
Jio Monetary Providers 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 Providers additionally plans to supply its fee aggregator and gateway companies to Jio Platforms and Reliance Retail, based on the discover.
The deal signifies Jio Monetary Providers’ 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.
