BofA agrees $1.9bn Jio Credit investment for stake of up to 49.9%

Bank of America and Jio Financial Services said on August 12 that they had agreed a BofA Jio Credit stake investment of up to ₹18,268 crore, or about $1.9 billion, for as much as 49.9% of the Indian digital lender. The proposed transaction would give BofA an initial 26.5% equity interest and provide Jio Credit with capital for growth, according to the companies.

The agreement remains subject to regulatory and statutory approvals. BofA is not buying an existing 49.9% holding outright: it will become a joint-venture partner through a preferential allotment of new equity shares and warrants by Jio Credit, Jio Financial's wholly owned non-bank financial company lending subsidiary.

How will BofA reach a 49.9% stake in Jio Credit?

The initial equity interest will be 26.5%. BofA's holding can increase to 49.9% if it exercises the warrants included in the transaction, the companies said.

Reuters reported that Jio Credit plans to issue shares worth up to ₹66.13 billion and warrants worth up to ₹116.55 billion to BofA. On that basis, Reuters calculated an implied valuation for Jio Credit of about $3.8 billion.

The deal does not represent a completed acquisition and does not amount to a retail-banking launch by BofA in India. A BofA spokesperson told Reuters that the transaction is not an expansion into Indian retail banking.

Governance and reporting will remain tied to Jio Financial

Jio Credit's board will have equal representation from Jio Financial and BofA once the arrangement is in place. Its existing management team will continue to oversee strategy and operations, while Jio Financial will continue to consolidate the lender as a subsidiary in its financial reporting, the companies said.

Jio Credit had assets under management of ₹30,667 crore, about $3.2 billion, at June 30, 2026, after two years of operations, according to the joint announcement. It is a digital-first lender offering secured credit, including mortgages, loans against securities, commercial finance and supply-chain finance.

BofA and Jio Financial said the venture would pair Jio Financial's digital reach and Indian-market knowledge with BofA's financial-services experience. BofA said the investment would provide capital to support Jio Credit's growth, alongside expertise in governance, risk management and technology.

Jio Financial listed in 2023 after its separation from Reliance Industries, Reuters reported. The group also operates businesses in payments, insurance broking and asset management, and has formed joint ventures with BlackRock and Allianz in other financial-services lines.

This story draws on original reporting from Finextra Research.