Fintech unicorn Slice joins hands with Guwahati-based North East Small Finance Bank (NESFB) after getting approval from the Reserve Bank of India.
Slice, a credit and payments business established in Bengaluru with an NBFC license, said the merger with the small finance bank will allow the combined entity “to better serve their shared mission and reach more consumers who currently lack access to basic banking services.”
The merger and shareholding details are unknown at this time, however Slice is believed to own a majority position in the new business.
Last year, Slice purchased a 5% interest in the bank. The investment was worth approximately $68 million to the small finance bank. Slice’s investors include Tiger Global, Insight Partners, EMVC, and Blume Ventures. In a funding round last year, it was valued at around $1.5 billion.
According to Slice, this transaction brings together Slice’s digital prowess with NESFB’s grassroots banking base, subject to shareholder approval and other regulatory approvals. The combined entity strengthens its commitment to financial accessibility and will provide customers with an exceptional digital banking experience.
Commenting on the merger, Rajan Bajaj, founder and CEO, slice said, “We will further strengthen our risk underwriting through the use of technology and data, and always keep customers at the heart of our decisions. We see this as an opportunity to build a highly inclusive and responsible bank, offering an unparalleled experience, underpinned by robust risk management and strong governance.”
There will be an integration process in the following months, with both businesses working to ensure a smooth transition for all clients.
Previously, Slice issued credit cards rather than prepaid cards to students and young customers. However, once the RBI issued a circular last year prohibiting credit over PPI, all fintechs, including Slice, were forced to stop offering prepaid cards loaded with credit lines.
