Indian credit card fintech Slice has received approval from the Reserve Bank of India (RBI) to merge with North East Small Finance Bank (NESFB), aiming to expand financial services access to underserved communities.
Facts
- Slice, a Bangalore-based fintech, specializes in flexible credit and lending services primarily targeting Millennials and offers an app for managing consumer expenses.
- Slice gained unicorn status after raising $220 million in a Series B funding round in December 2021, followed by a $50 million Series C led by Tiger Global.
- Slice acquired a 5% stake in NESFB, valuing the bank at $68.4 million, before deciding to merge.
- RBI’s order in June 2022 banned credit loading through prepaid payment instruments, leading Slice to transition to term loans. The merger with NESFB will result in Slice becoming a small finance bank.
- Slice’s CEO, Rajan Bajaj, sees the merger as an opportunity to serve a broader audience, strengthen risk underwriting with technology and data, and build a deeper connection with customers.
