The largest asset manager in the world, BlackRock, is allegedly in advanced talks with Jio Financial Services, the financial division of Mukesh Ambani's Reliance Group, a move that might upend the Indian financial industry.

BlackRock , the world's biggest asset manager, is in talks with Mukesh Ambani-led Reliance Group firm Jio Financial Services to set up a private credit venture, Bloomberg News reported on Wednesday, citing people familiar with the matter.

BlackRock Inc., the world’s largest asset manager, is in discussions with Mukesh Ambani’s Jio Financial Services Ltd. to launch a private credit venture, aiming to tap into the growing direct lending market in India,

BlackRock (NYSE:BLK) is in talks with Jio Financial Services, which billionaire Mukesh Ambani owns a hefty stake, to establish a private credit venture in India, following the footsteps of global firms like Apollo Global Management (APO) to capitalize on the country's growing direct lending opportunities,

Jio Financial and U.S.-based BlackRock got in-principle approval from India's markets regulator to act as co-sponsors and set up a mutual fund business in the country, the Mukesh Ambani-led Reliance Group company said on Friday.

The 50-50 joint venture will lend to businesses ranging from large companies to startups, the people said, asking not to be identified as the information is not public

India has been a bright spot for private credit in Asia, with global firms like Apollo Global Management, Cerberus Capital Management LP and Varde Partners stepping up their operations, lured by the increased funding needs of local firms.