Bank of America to Acquire Up to 49.9% Stake in Jio Credit for $1.9 Billion
Bank of America announced a joint venture agreement to acquire up to 49.9% of Jio Credit Limited for approximately $1.9 billion, with an initial 26.5% equity stake that could rise upon warrant exercise. The deal underscores confidence in India's growth and aims to enhance digital credit delivery.
Bank of America has agreed to purchase up to a 49.9% stake in Jio Credit Limited, the nonbank lending subsidiary of Mumbai-based Jio Financial Services Limited, for approximately $1.9 billion, the bank announced on Wednesday.
Jio Credit, established in 2025, has grown its assets under management to $3.2 billion as of June 30. By investing in Jio Credit, Bank of America will strengthen its footprint in India, which the World Bank identifies as one of the fastest-growing economies globally.
“India is one of the world's most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades,” said Brian Moynihan, CEO of Bank of America, in a prepared statement. “We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time.”
Bank of America stated that its investment will provide Jio Credit with capital to continue expanding while gaining access to global expertise.
“Jio Financial Services is committed to making finance more seamless and simpler for Indians than ever before, leveraging new technology and anchored in the highest standards of governance,” said founder Mukesh Ambani in a prepared statement. “Our strategic partnership with Bank of America is a pivotal milestone in this mission.”
The investment will be made through a preferential allotment of equity shares and warrants, totaling up to 182.68 billion rupees (approximately $1.9 billion USD). Initially, Bank of America will acquire a 26.5% equity interest in Jio Credit, which can increase to 49.9% upon the exercise of warrants.
“By combining our digital reach with Bank of America's global pedigree, we will eliminate friction in credit delivery for all Indians, empowering them to chart a prosperous and inclusive path forward for the entire nation,” Ambani added.
Bank of America and Jio Financial Services Limited will have equal representation on Jio Credit’s board of directors.
The transaction is subject to regulatory and statutory approvals.