Jio Leasing Services, a subsidiary of Jio Financial Services, has announced its plans to acquire customer premises equipment, devices, and telecom equipment worth $4.32 billion from Reliance Retail. The deal, which spans over the next two financial years ending in March 2026, marks one of the largest equipment transactions in the Indian telecom sector.
Jio Leasing Services aims to enter the Device-as-a-Service (DaaS) business model, in which it will lease telecom devices along with associated services to customers of Reliance Jio Infocomm. Reliance Retail, valued at $100 billion in 2023, will sell the devices to Jio Leasing Services at cost plus margin. By shifting to a leasing model, Jio aims to make access to the latest 5G devices more affordable for customers and attract more subscribers to its network.
In another development, Oyo, the Indian budget hotel chain, has withdrawn its IPO application from the Securities and Exchange Board of India (SEBI) for the second time. This setback comes as a blow to the startup, which was once valued at $10 billion. Oyo has been struggling to secure new funding and is now attempting to raise capital at a valuation as low as $2 billion to $2.3 billion.
Despite its initial success and backing from investors such as SoftBank and Airbnb, Oyo has faced criticism for its business practices in recent years. The startup has even laid off thousands of employees to cut costs. Now, with the withdrawal of its IPO plans, Oyo’s ambitions for growth and expansion are in question.
Overall, the telecom equipment purchase by Jio Leasing Services and the shelving of Oyo’s IPO plans demonstrate the dynamic nature of the startup landscape. While some companies forge ahead with strategic acquisitions and expansion plans, others face challenges and setbacks in their pursuit of growth and financial stability.
Referências:
Jio Financial unit to buy $4.32B of telecom gear from Reliance Retail
Jio Financial Services subsidiary announces $4.32 billion telecom equipment purchase
Oyo, once valued at $10 billion, shelves IPO plans for second time
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