Bank of America to acquire up to 49.9% stake in Jio Credit for $1.92bn

Bank of America Corp. has agreed to acquire up to a 49.9% stake in Jio Credit Services Private Ltd. for $1.92 billion, marking the U.S. lender's first direct investment in India's digital lending market.

The transaction, subject to regulatory approvals, values Jio Credit at $3.84 billion, according to a statement released on Friday. Jio Credit, a subsidiary of Reliance Industries Ltd., operates as a digital lending platform offering unsecured personal loans and other financial services to consumers and small businesses.

Bank of America will acquire the stake through a mix of equity and convertible instruments, with the option to increase its holding to 50% at a later stage. The deal aligns with the bank's strategy to expand its presence in high-growth markets and tap into India's expanding digital finance ecosystem.

India's digital lending sector has seen rapid expansion in recent years, driven by increasing smartphone penetration, government initiatives such as the Unified Payments Interface (UPI), and rising demand for credit among underserved populations. Jio Credit, launched in 2021, has emerged as a key player in this space, leveraging Reliance Industries' extensive customer base and digital infrastructure.

The investment underscores Bank of America's commitment to diversifying its global footprint beyond traditional markets. The bank has previously explored partnerships and minority stakes in financial services firms but has not made direct equity investments in India's fintech or digital lending sectors until now.

Regulatory filings and approvals are expected to be completed within the next 12 months, pending clearance from the Reserve Bank of India and other relevant authorities. No further financial details or operational synergies were disclosed in the announcement.