Bank of America will acquire up to 49.9% of Jio Credit, the digital lending arm of Jio Financial Services, in a deal valued at $1.9 billion, aiming to expand digital lending in India and reshape the country's financial services landscape
Bank of America is set to become a major shareholder in Jio Credit, the digital lending subsidiary of India's Jio Financial Services, through a joint venture valued at approximately $1.9 billion. The agreement, which is subject to regulatory approval, will see Bank of America initially take a 26.5% equity stake in Jio Credit via a preferential allotment of shares and warrants. If all warrants are exercised, Bank of America's ownership could rise to a maximum of 49.9%.
Under the terms of the deal, Jio Credit's board will be evenly split between representatives from Jio Financial Services and Bank of America. The company will continue to be managed by its current leadership, led by managing director and CEO Kusal Roy, and will remain a consolidated subsidiary of Jio Financial Services for reporting purposes. The transaction is designed to combine Jio's reach in India's digital finance sector with Bank of America's expertise in financial services, governance, risk management, and technology.
Jio Credit's Growth and Market Position
Jio Credit, originally launched as JioFinance in mid-2024, has rapidly expanded its offerings to include home mortgages, commercial loans, secured lending, and supply chain finance. These services were rolled out in October 2024, just months after the app's initial launch. As of 30 June 2026, Jio Credit reported total assets under management of INR 30,667 crore (about $3.2 billion), reflecting strong demand for digital lending products in India's evolving financial landscape.
The capital injection from Bank of America is expected to accelerate Jio Credit's loan portfolio expansion, supporting both consumer and business lending. Jio Financial Services, which became an independent entity after its August 2023 spin-off from Reliance Industries, has positioned itself as a key player in India's financial sector, with additional operations in payments, leasing, and insurance brokerage. The company also maintains joint ventures with BlackRock for asset management and Allianz Group for reinsurance, both of which began active operations in 2026.
Deal Structure and Regulatory Considerations
The investment will be executed in two stages: an initial equity purchase and a subsequent increase in ownership if warrants are exercised. The deal remains subject to statutory and regulatory approvals in India, including clearance from financial regulators and competition authorities. Upon completion, the joint venture will formalize Bank of America's largest direct investment in India's digital lending sector to date.
For Jio Financial Services, the proceeds from the stake sale will be used to fund further growth in Jio Credit's lending activities, with a focus on expanding access to credit for individuals and businesses. The partnership is also expected to introduce international best practices in risk management and technology to Jio Credit's operations, potentially influencing broader trends in India's digital finance market.
Key Figures and Market Context
As of 30 June 2026, Jio Credit's assets under management stood at INR 30,667 crore (approximately $3.2 billion), up from its initial launch in 2024. The Bank of America investment is valued at up to INR 18,268 crore (about $1.9 billion), with the initial 26.5% stake to be acquired through a preferential allotment of shares and warrants. If all warrants are exercised, Bank of America's stake could reach 49.9%, making it a near-equal partner in the joint venture.
Jio Financial Services' broader strategy includes leveraging partnerships with global financial institutions to expand its product offerings and reach. Its joint ventures with BlackRock and Allianz Group, launched in 2026, have already begun to reshape India's asset management and reinsurance sectors, signaling a trend toward greater international collaboration in Indian finance.
Understanding Digital Lending in India
Digital lending in India has grown rapidly in recent years, driven by increased smartphone penetration, regulatory support for financial inclusion, and the rise of non-bank financial companies. Digital lenders use technology to assess creditworthiness, disburse loans, and manage repayments, often reaching customers underserved by traditional banks. However, the sector faces challenges related to data privacy, regulatory oversight, and credit risk management. Partnerships between established global banks and local digital lenders, such as the Bank of America-Jio Credit joint venture, are likely to influence the evolution of standards, risk controls, and consumer protections in this fast-changing market.
