Northern Arc Capital, Niyogin Fintech Limited, Credit Saison India and Vivriti Capital participated in this round
It had raised INR INR 39 Cr in debt funding from some of the same investors in November last year
The fintech startup claims to have more than 3 Mn registered users and a 30% month-on-month growth
Fintech startup slice, which offers payments cards and credit cards to millennial and Generation Z audiences, announced that it has raised INR 75.5 Cr in debt from multiple financial institutions like, Northern Arc Capital, Niyogin Fintech Limited, Credit Saison India and Vivriti Capital to name a few.
In November 2020, it had raised INR 39 Cr in debt funding from Vivriti Capital, Northern Arc Capital and InCred Financial Services among others.
Founded in 2016 by Rajan Bajaj, slice (earlier Slicepay) is a fintech startup offering credit solutions exclusively for young consumers between the ages of 18 and 29. The company issues credit cards and payments cards to this segment in partnership with Visa and SBM Bank, allowing this cohort to build a good credit score, while also offering rewards and discounts from payments. It provides Generation Z and millennial audiences a credit line starting from INR 10,000 going up to INR 10 Lakh.
“The banking industry in India often views credit cards as a loan product instead of a high-frequency payment instrument. Therefore, banks’ main focus is to optimise the fees and portfolios while overlooking the experience. However, we see slice card as a classic payment product, and we are solving it as a customer experience problem with a customer-centric approach in mind,” said Rajan Bajaj, founder & CEO, slice.
The fintech startup claims to have more than 3 Mn registered users and a 30% month-on-month growth. The slice super card comes with no hidden charges, joining fees, or annual fees. It is also accepted at 99.95% of merchants across the country that accept Visa.
To further enhance the experience, slice launched an instant rewards program and “slice in 3 feature” in June 2021. “slice in 3” allows users to convert their monthly bills into 3 months without any extra cost. Post the launch, Slice claims to have witnessed skyrocketing growth in monthly new card issuance making it the 3rd largest card issuer in the country.
In June, Slice had raised $20 Mn in a fresh equity funding round led by existing investors Blume Ventures and Gunosy Capital.
According to April data from RBI, the volume and value of credit card transactions in the country stood at 15.8 Cr and INR 59,150 Cr respectively. Compared to this, NPCI reported 119.2 Cr P2M UPI transactions worth INR 81,836 Cr in April. Inc42 had reported in November 2020, that UPI was poised to surpass credit card transactions by value in 2020.
However, credit solutions (including virtual credit cards) are increasingly gaining prominence as short term credit channels for different segments of the population. Other neobanking companies that targeted younger customers include Fampay, Junio, Yodaa and Fi Money (salaried individuals).