Slice seeks $100M funding to expand physical and digital presence
What's the story
Bengaluru-based fintech firm Slice is in advanced talks to raise between $80 million and $100 million in a new funding round. The company is negotiating with several investors, including Accel, Elevation Capital, Peak XV Partners, and others. This will be the first major funding round for Slice since it became a small finance bank (SFB). The fintech firm aims to expand its physical and digital reach across the country.
Investment details
Slice's valuation dips under $1 billion
The exact structure of the funding round is still being finalized. It could go beyond $100 million if a secondary component, like liquidity for ESOP holders, is included, as per Moneycontrol. Slice is currently valued at just under $1 billion in ongoing negotiations. This marks a correction from its 2022 valuation of $1.3-1.4 billion, according to Tracxn, a private markets data provider.
Business growth
Slice's banking transformation and diversification
Slice, which is backed by Tiger Global, is one of the few Indian fintech start-ups to have a banking license. The company acquired North East Small Finance Bank (NESFB) in 2023 and merged it with its own entity to form Slice Small Finance Bank. Since then, Slice has been diversifying its offerings by lending to micro, small and medium enterprises (MSMEs) as well as merchants.
Market competition
Rise in merchant payments and lending
With its expansion into merchant payments and lending, Slice now competes with the likes of Paytm, PhonePe, Google Pay, and BharatPe. Despite the competition, Slice has seen significant growth in its banking business. Since merging with NESFB in October, the company has doubled its deposits and is issuing around 300,000 bank accounts to customers every month.