MUMBAI (Reuters) -India’s Jio Financial Services, part of billionaire Mukesh Ambani led Reliance Group, and U.S. based BlackRock Inc will form a 50:50 joint venture to launch asset management services in India.
The two companies are targeting an initial investment of $150 million each in the joint venture, Jio Financial said in a release on Wednesday.
The announcement comes days after Jio Financial Services was demerged from Reliance Industries, with the markets ascribing a valuation of nearly $20 billion to the venture which is yet to build out a business in India’s fast growing financial services sector.
“The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products,” said Hitesh Sethia, CEO of JFS in the release.
India’s asset management industry has seen rapid growth in recent years and has 44.3 trillion Indian rupees ($540.4 billion) in assets under management.
($1 = 81.9720 Indian rupees)
(Reporting by Ira Dugal; Editing by Kirsten Donovan)
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