Partner Content | Nikkei Leaderboard

Fintech startup Slice Bank looks to raise $250m to support expansion

Fintech startup Slice Bank looks to raise $250m to support expansion

Indian hundred rupee notes rolled in a bundle. Photo: Rupixen/Unsplash

Fintech company Slice Bank is in discussions to raise $250-300 million from financial investors and family offices to support its pan-India expansion plans, The Economic Times reported on Tuesday.

As part of the expansion, Slice Bank is planning to increase its employee count. It also plans to launch new financial products, including personal loans, SME lending, gold loans, fixed deposits, co-branded credit cards and it also aims to grow its customer base to over 70 million by end-FY30 from the current 11 million users.

The startup is also set to be rebranded to Slice Small Finance Bank Limited after its merger with North East Small Finance Bank received the nod from the Reserve Bank of India last year when Slice bought a 5% stake in the Assam-based bank for about $3.42 million.

Post the merger, the bank’s net worth stood at Rs 912.58 crore. Its Capital to Risk-Weighted Assets Ratio (CRAR) grew to 23.67%, and the Net Non-Performing Assets (NNPA) reduced to 4.62% from 6.69%.

Following the merger, Slice became the first company in the fintech space to enter the small financial bank sector in India. This came at a time when the RBI had rejected other fintech companies from setting up small finance banks in the country.

Established by Rajan Bajaj, the financial services company is focused on serving millennials and GenZ users. It provides physical and virtual credit cards to them and also offers financing options to students and salaried professionals during online purchases.

Last year, the company raised $36 million through convertible debt co-led by Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust. Blume Ventures and 8i Ventures also participated in the round, among other investors. The company has so far raised $386.9 million as per data from Crunchbase, with the biggest being a $226 million Series B round led by Tiger Global and Insight Partners.

The fintech platform’s revenue tripled to Rs 847 crore during FY23 from Rs 283 crore in FY22. However, its losses widened by over 50% to Rs 406 crore during the period from Rs 254 crore in FY22.

Edited by: Pramod Mathew

This is your last free story for the month. Register to continue reading our content