Jio Leasing Services Ltd (JLSL), a subsidiary of Jio Financial Services, has revealed its ambitious plan to purchase customer premises equipment, devices, and telecom gear totaling $4.32 billion from Reliance Retail over the next couple of financial years. This move comes as JLSL sets its sights on venturing into the Device-as-a-Service (DaaS) realm, where it will lease telecom devices alongside related services to Reliance Jio Infocomm customers.
Under this arrangement, Reliance Retail, which was valued at approximately $100 billion within Reliance Industries in 2023, will sell these devices to JLSL at cost plus a margin. This upcoming deal is poised to become one of the telecom sector’s most substantial equipment transactions in India. By transitioning to a leasing model facilitated by JLSL, Jio aims to democratise access to cutting-edge 5G devices, thereby attracting more subscribers to its network.
The transaction will unfold over the financial years ending in March 2025 and March 2026, reflecting a strategic move by Jio to expand its device offerings and bolster its market presence. Jio Financial Services, once a relatively obscure non-bank financial arm of Reliance Industries, gained prominence after being demerged and listed separately last year. Despite this transformation, Reliance still retains over 80% ownership of the company.
Additionally, Jio Financial Services is gearing up to extend its payment aggregator and gateway services to Jio Platforms and Reliance Retail, as outlined in the notice. This multifaceted approach underscores Jio Financial Services’ evolving interest in diverse business domains beyond traditional lending.
Through the innovative DaaS model, the company intends to lease various devices, including laptops and its AirFiber mobile hotspot, catering to the needs of both individual users and businesses alike. This strategic move represents a significant step forward for Jio Financial Services as it expands its footprint in the ever-evolving landscape of digital services and connectivity.
