- Bengaluru-based fintech unicorn slice has fortified its financial position by securing $20 million in debt funding from Neo Asset Management’s Credit Opportunities Fund.
- This infusion is part of a broader $30 million debt round, with slice anticipating the receipt of the remaining $10 million shortly.
- The capital raised will be strategically deployed towards fulfilling corporate objectives and bolstering working capital, ensuring slice maintains its growth trajectory and operational efficiency.
Merger and Market Expansion
In a significant move earlier this year, slice gained approval from the Competition Commission of India for its merger with North East Small Finance Bank based in Guwahati. This merger, pending approval from the National Company Law Tribunal, is poised to grant slice a coveted banking license, marking a pivotal transition from its origins as a buy now pay later platform.
slice’s Evolution
Founded in 2016 by Rajan Bajaj, slice began as Slicepay—a BNPL service—and evolved into offering a credit card-like prepaid payment instrument without annual fees or interest charges. However, regulatory changes in 2022 led to a discontinuation of this service and prompted slice to explore new business models and merger opportunities.
Current Offerings and Valuation
slice has adapted to offer UPI payments, consumer credit, and prepaid payment banking accounts through its app. With a valuation of $1.5 billion, slice boasts backing from prominent investors such as Tiger Global, Gunopsy Capital, Blume Ventures, Advent International’s Sunley House Capital, Moore Strategic Ventures, and Anfa.
Neo Asset Management’s Investment Strategy
The funding round coincides with Neo Asset Management’s closure of its first Special Credit Opportunities Fund at INR 2,575 Cr, sourced from high-net-worth individuals and family offices. The fund targets investments in profitable non-triple-A rated companies, aligning with Neo Asset Management’s strategic focus on credit opportunities.
As slice awaits NCLT’s nod for its merger, the fintech firm is poised to leverage its new banking license to expand its suite of financial services. This strategic move could potentially reshape the fintech landscape and reinforce slice’s position as a leading player in the industry.
