New Delhi: Jio Leasing Services Ltd (JLSL), a part of Jio Financial Services, is set to buy customer premises equipment, devices, and telecom gear worth $4.32 billion from Reliance Retail over the next two years. This was mentioned in a notice sent to shareholders asking for their approval.
JLSL is starting a Device-as-a-Service (DaaS) model, which means it will lease telecom devices and related services to Reliance Jio Infocomm customers. Reliance Retail, valued at about $100 billion in 2023, will sell these devices to JLSL at cost plus a profit margin.
This deal will be one of the largest in the Indian telecom sector. By using the leasing model through JLSL, Jio aims to make the latest 5G devices more affordable for customers, attracting more subscribers to its network. The transaction will take place over the financial years ending in March 2025 and March 2026.
Jio Financial Services, once a lesser-known non-bank financial part of Reliance Industries, was spun off and listed separately last year, with Reliance still owning over 80% of it. Jio Financial Services also plans to offer payment services to Jio Platforms and Reliance Retail.
This deal shows Jio Financial Services’ growing interest in areas beyond lending. Through the DaaS model, the company plans to lease devices like laptops and its mobile hotspot, AirFiber, to businesses.
