Fintech

Fintech Startup Slice to Rebrand as Small Finance Bank, Plans Fundraise for Expansion

• ByStartupStory     |    January 27, 2025

Fintech startup slice announced on Monday that it will rebrand as slice Small Finance Bank Limited (slice SFB) following its merger with North East Small Finance Bank (NESFB). The merger, which has received key regulatory approvals, including a No Objection Certificate (NOC) from the Reserve Bank of India (RBI), will make slice the first fintech bank in India.

According to internal documents accessed by YourStory, the merger will be finalized once all regulatory and compliance requirements are met, paving the way for slice SFB’s nationwide expansion. Over the next three years, the bank plans to introduce a suite of financial products, including high-yield savings accounts, fixed deposits, co-branded credit cards, personal loans, SME lending, gold loans, and digital banking solutions.

Post-merger, the bank’s net worth stands at ₹912.58 crore, while its Capital to Risk-Weighted Assets Ratio (CRAR) has improved to 23.67%. Additionally, the bank’s Net Non-Performing Assets (NNPA) have decreased from 6.69% to 4.62%.

Commenting on the development, a source close to the matter told YourStory, “Some industry folks had written off slice’s merger as just NESFB’s technology partner, but this name change suggests otherwise. It shows RBI is genuinely serious about a digital-first bank in India and is giving slice the chance to lead it, it’ll be interesting to see how all this turns out.”

As part of its pan-India expansion plan, the Assam-based slice SFB is in talks to raise $250-300 million from a group of financial investors and family offices, as reported by The Economic Times. The bank aims to increase its customer base from the current 11 million to over 70 million by the end of FY30.

Currently operating around 200 branches, slice SFB plans to ramp up its workforce across multiple roles to support its ambitious expansion strategy. The bank is led by Managing Director and CEO Satish Kumar Kalra, while slice Founder Rajan Bajaj now holds an approximate 15% stake in the small finance bank.

With its focus on a digital-first approach, slice SFB’s transformation is seen as a significant milestone in India’s banking sector, as it strives to bridge the gap between traditional banking services and innovative fintech solutions.

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