Jio Leasing Companies Ltd (JLSL), a subsidiary of Jio Monetary Companies, plans to purchase buyer premises gear, gadgets 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 in search of approval of the deal.
JLSL is getting into the enterprise of working a Gadget-as-a-Service (DaaS) mannequin — it’s going to lease telecom gadgets together with related providers to clients 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 gear transactions within the Indian telecom sector. By shifting to a leasing mannequin by means of JLSL, Jio goals to make it extra reasonably priced for patrons to get entry to the newest 5G gadgets and appeal to 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 yr. 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 gadgets like laptops and its cell hotspot AirFiber to companies.
