Fintech Unicorn Slice Announces Merger with North East Small Finance Bank
- ByStartupStory | October 4, 2023
Slice, a fintech startup specializing in credit and payments, has revealed plans to merge with North East Small Finance Bank (NESFB) based in Guwahati. The Reserve Bank of India has given its approval for this groundbreaking merger, marking a significant development in the fintech and banking sectors.
Slice, headquartered in Bengaluru, achieved a valuation of approximately $1.8 billion during its last funding round in the previous year, as reported by data intelligence platform Traxcn. This Series C funding round raised $50 million and was backed by prominent investors including Tiger Global, Moore Strategic Ventures, Insight Partners, and GMO Venture Partners.
While specific details about the merged entity’s shareholding remain undisclosed, it is likely that slice’s shareholders will hold a majority stake. This merger represents a rare occurrence in which a modern fintech startup merges with a small finance bank.
In March 2023, slice had already acquired a 5% stake in NESFB for $3.4 million.
The merger aims to achieve the shared objective of integrating technology with grassroots financial inclusion across India, although it is contingent on obtaining shareholders’ consent and other regulatory approvals.
Rajan Bajaj, Founder and CEO of slice said, “We’re grateful to the RBI for entrusting us with this immense responsibility. This approach allows us to serve a wider audience, including those often overlooked. We will further strengthen our risk underwriting through the use of technology and data. We see this as an opportunity to build a highly inclusive and responsible bank, underpinned by robust risk management and strong governance.”
The management positions and strategic adjustments resulting from this merger will be decided upon in the coming months. Both companies are committed to ensuring a seamless transition for all customers during the integration process.
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