Jio Financial Services is non-banking financial services company which is making waves in the Indian financial sector. It started as a subsidiary of Reliance Industries Limited as Reliance Strategic Investments Private Limited in the year 1999 but was rebranded and demerged from RIL in the year 2023 as an independent entity focused on digital financial services. With a broad range of services, Jio Financial Services aims to provide accessible financial services to millions of Indians, leveraging Reliance’s vast ecosystem, including over 500 million Jio telecom subscribers. The company targets underserved urban, semi-urban and rural markets. Want to know more about its operations, revenues and other details? Let’s take a quick look at the same.
What Are The Main Components of The Business Model
Jio Financial Services is a holding company and its operations are structured around consumer facing subsidiaries and joint ventures. The business model of the company seamlessly integrates lending, payments, investments and insurance into the Reliance Ecosystem.
Jio Finance Limited is the lending arm of Jio Financial Services. It is primarily involved in lending activities like personal loans, home loans, micro financing, solar financing and others. JFL holds an NBFC licence from the RBI.
Jio Payment Solutions Limited is concerned with digital payments infrastructure and has received approval from the RBI to operate as an online payment aggregator. Jio Payments Bank, on the other hand, provides digital banking services. It was launched as a joint venture with SBI, with JFS holding 77% stakes in it.
Jio Insurance Broking Limited functions as a licensed insurance broker, facilitating the distribution of various insurance products in partnerships with over 29 insurers. It is a 50:50 joint venture between JFS and Allianz.
Jio BlackRock is a 50:50 joint venture between JFS and BlackRock. It has received SEBI approval for stock broking, wealth management and asset management.
Jio Leasing Services Limited operates leases for assets like router/equipment Device as a Service or DaaS.
| Company | Jio Financial Services Limited |
| Establishment Year | 1999 |
| Headquarters | Mumbai, Maharashtra, India |
| Founder/Owner | Mukesh Ambani |
| Industry | Finance |
| Net Worth | $14.44 billion |
| Revenue In 2024 | $18.54 million |
How Does Jio Financial Services Make Money?
1. Lending and Microfinance
Jio Financial Services provides multiple types of loans, micro financing and vendor financing through Jio Finance Limited. Revenue is earned through interest on the loans and processing fees. Customers are able to apply for loans quickly through the JioFinance App. Advanced data analytics are used by the app to determine creditworthiness of the applicants, thereby enabling faster approvals
2. Digital Banking Services
Jio Financial Services provides digital banking services like saving accounts, debit cards, UPI, IMPS services and more through Jio Payments Bank Limited. The customers get swift and smooth access to their accounts through the JioFinance App.
Revenue is generated from transaction fees, interest on deposits and account maintenance charges.
3. Insurance Broking
Jio Financial Services offers a wide range of insurance products, including health, general and life insurance, through Jio Insurance Broking Limited. The customers use the JioFinance App to compare and purchase policies by different insurance companies. Revenue is earned in the form of commissions on policies sold by the insurers through the platform.
4. Merchant Payment Services
Jio Financial Services operates in merchant payments through Jio Payment Solutions Limited. JPSL offers a number of merchant payment solutions like merchant payment app and UPI integration. Revenue is earned in the form of transaction fees charged on each merchant transaction.
5. Asset Leasing
Jio Financial Services offers asset leasing services for devices, equipment and other kinds of assets through Jio Leasing Services. Revenue comes from lease payments made by the customers using leased assets.
Insights Into Growth & Profitability
Revenues of Jio Financial Services increased from 5 crore rupees in financial year 2023 to 1850 crore rupees in the financial year 2024. This was a YoY growth of over 37,000, driven by demerger and new launches. The company’s net profit stood at 1,631 crore rupees in FY24, with the cost-to-income ratio at 50%.
Gross profit margin of Jio Financial Services has been consistently above 40% since FY 2022. This is above the average gross profit margin of 38% in the financial sector. Furthermore, the company’s operating profit margin and net profit margin also surpass the industry average of 27% and 16% respectively.
