The fintech startup, Slice, has become India’s latest unicorn after raising $220 million at a valuation of over $1 billion. Slice raised venture capital as part of its Series B round of funding led by New York-based investment firms Tiger Global and Insight Partners.
Slice, located in Bangalore, is an Indian financial technology company that issues credit cards via an app. Founded in 2016, the company holds a non-banking financial company license from the Reserve Bank of India.
Slice offers real-time updates on spending, provides insight into the kind of purchases made in various categories such as fashion, travel, food, and utility products, and reminds users to make regular payments. It is a credit card created specifically for the Indian youth that is free of annual fees and charges, making it a unique alternative to traditional credit cards. Slice fully commits to maintaining the privacy of all users’ data and uses state-of-the-art security solutions. To ensure secure payments, it partner with leading banks and financial institutions.
Venture capital was raised by Slice as part of its Series B round of funding led by Tiger Global and Insight Partners. New and existing investors participated in the round, including Sunley House Capital, Moore Strategic Ventures, Anfa, Gunosy, 8i, and Blume Ventures. Flipkart founder Binny Bansal and other notable angels have also participated in it.
Slice becomes the 41st Indian startup this year to achieve unicorn status. A unicorn is a privately-held startup whose valuation is $1 billion or more. The Bengaluru-based startup, owned by GaragePrenuers Internet Pvt. Ltd., is the 11th fintech unicorn so far this year. With this round, Slice has raised more than $250 million in equity funding.
As part of a funding round led by Blume Ventures and Gunosy Capital, Slice had raised $20 million in June. A portion of the new capital will be used to fund the company’s (NBFC) subsidiary and increase its loan book. The company also intends to use proceeds to grow its existing lines of business, invest in newer products and expand its engineering and design capabilities.
Slice provides users with the ability to pay bills, manage expenses and earn rewards. It is designed for young millennials and Gen Z, with an average age of 27, who have been denied credit cards by large banks due to insufficient credit ratings. In addition to offering credit and payment cards, Slice Super Card has partnered with Visa and SBM Bank India Ltd for building credit scores and rewards and earning discounts.
Having built a solid business model, Slice is now expanding and scaling the platform. It has been prudent with its business so far, spending just $4.5 million (in the capital) over five years. In addition to raising capital, part of the proceeds will be invested in its NBFC as it needs to own a business rather than simply borrow. Rajan Bajaj, founder, and chief executive officer of Slice, said in an interview that the remainder of the money will be used to launch new products and scale the team.
Besides credit card issuances, Slice is working on integrating unified payments interfaces (UPIs) into its app in the near future, Bajaj said. Designed to target an under-penetrated market in India, Slice allows users to seamlessly pay bills, make online payments and more. Slice has more than tenfold its monthly credit card issuances this year alone, from 20,000 cards in January to close to 200,000 cards in October.
