Jio Leasing Services Ltd (JLSL), a subsidiary of Jio Financial Services, has recently announced plans to purchase customer premises equipment, devices, and telecom equipment worth $4.32 billion from Reliance Retail in the next two financial years. This move marks JLSL’s entry into the Device-as-a-Service (DaaS) market, where it will lease telecom devices and provide associated services to customers of Reliance Jio Infocomm. Under the agreement, Reliance Retail, which is valued at approximately $100 billion, will sell the devices to JLSL at cost plus margin.
This deal is set to become one of the largest equipment transactions in the Indian telecom sector. By adopting a leasing model through JLSL, Jio aims to make it more affordable for customers to access the latest 5G devices and ultimately attract more subscribers to its network. The transaction will be spread out over the financial years ending in March 2025 and March 2026.
It is worth noting that Jio Financial Services was previously a lesser-known subsidiary of Reliance Industries. However, last year, the conglomerate demerged the unit and listed it as a separate entity. Despite this, Reliance still retains ownership of over 80% of the company. In addition to the equipment purchase, Jio Financial Services plans to offer its payment aggregator and gateway services to both Jio Platforms and Reliance Retail.
This deal serves as a significant indication of Jio Financial Services’ expanding interests beyond lending. Through the DaaS model, the company intends to lease not only telecom devices but also other equipment like laptops and its mobile hotspot AirFiber to businesses. This diversification showcases Jio’s commitment to providing comprehensive solutions and services to its customers.
Overall, this strategic move by JLSL highlights Jio’s efforts to stay ahead in the rapidly evolving telecom industry. By offering affordable access to cutting-edge devices and expanding its reach into various sectors, Jio continues to solidify its position as a leader in the Indian market.