Controlled by billionaire Mukesh Ambani, Reliance's debt burden has risen significantly since its telecom unit Jio Infocomm entered country's crowded mobile market in late 2016 offering free voice calls and cut-price data to build a massive consumer base.
The price war unleashed by Jio forced rivals to consolidate, driving companies such as Reliance Communications, controlled by Mr Ambani's younger brother, and Aircel out of business.
Reliance Industries will have rights to convert its Rs. 1.08 lakh crore ($15.26 billion) investment in the new digital company into equity, the oil-to-retail conglomerate said in a statement.
The new unit will, in turn, invest the funds in Jio, making the telecoms venture almost net debt free by the end of March 2020.
The new digital services company - which also includes Jio's news, movie and music apps - will also acquire Reliance's equity investment of Rs. 65,000 crore in Jio.
"Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners," Reliance Chairman Ambani said in the statement.
"We will induct the right partners in our platform company, creating and unlocking meaningful value for RIL shareholders."