Competition Commission of India (CCI) Approves Merger of Slice with North East Small Finance Bank
- ByStartupStory | March 13, 2024
Fair trade regulator, the Competition Commission of India (CCI) has granted approval for the merger of Bengaluru-based fintech unicorn ‘Slice’ with Guwahati’s North East Small Finance Bank (NESFB). This strategic union, supported by investment giants Tiger Global and Insight Partners, marks a pivotal moment in the convergence of technology and grassroots financial inclusion.
The Reserve Bank of India (RBI) had previously issued a no-objection certificate (NOC) for the merger in October of the preceding year, setting the stage for this transformative collaboration. Following the merger, the newly-formed SFB Slice aims to transition its current prepaid accounts into full-service banking accounts.
Slice, known for providing credit and payment services, envisions this merger as a step towards enhancing its competitive edge in the lending space. The move aligns with the shared goal of integrating technology for widespread financial inclusion across the country.
NESFB, operating 208 branches across seven North East states and West Bengal, has a strong focus on rural customers and the bottom of the pyramid segment. The merger is expected to allow the combined entity to raise deposits from the public, thereby reducing the cost of funds for lending.
In the fiscal year 2023, SFB Slice reported a noteworthy threefold increase in operating revenue to ₹847 crore. While ₹472 crore came from interest on loans disbursed through its NBFC subsidiary, ₹375 crore was generated from fees and commissions. However, losses increased by 60% to ₹406 crore in the same period.
The CCI has also granted approval for the merger between Garagepreneurs Internet Private Limited, the parent company of Slice, and its subsidiaries — Quadrillion Finance Private Limited (QFPL), an NBFC, and Intergalactory Foundry Private Limited (IFPL), along with the bank. The proposed transaction also involves the wholly-owned subsidiary of the Guwahati-headquartered bank—RGVN (North-East) Microfinance Limited.
Meanwhile, the CCI has given the green light for TPG Growth V SF Markets Pte. Ltd. and Waverly Pte. Ltd. to acquire a stake in the Asian Institute of Nephrology and Urology (AINU) through Asia Healthcare Holdings Pte. Ltd. In the wake of this approval, TPG Growth V SF Markets Pte Ltd and Waverly Pte Ltd will obtain redeemable preference shares in AHH, jointly owned and controlled by the TPG Group and Waverly.
Additionally, the regulator has cleared the proposed acquisition of a majority shareholding in the Asian Institute of Nephrology and Urology Pvt Ltd (AINU) by AHH, marking further strides in the healthcare investment landscape.
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