Credit card challenger Slice secured $10m in debt funding from multiple financial institutions like, Northern Arc Capital, Niyogin Fintech Limited, Credit Saison India, and Vivriti Capital to name a few.
In June, Slice, which boasts of investors such as Gunosy Capital, Das Capital, Finup, Blume Ventures India, Simile Venture Partner, EMVC, Tracxn Labs, Better Capital, Sachin Bansal’s Navi alongside angel investors such as Kunal Shah, raised $20m in a fresh equity funding round led by existing investors Blume Ventures and Gunosy Capital.
Founded in 2016 by Rajan Bajaj, slice (earlier Slicepay) offers credit solutions exclusively for young consumers between the ages of 18 and 29. The company issues payments cards to this segment in partnership with Visa and SBM Bank, allowing this cohort to build a good credit score, while also offering rewards and discounts from payments. It provides Generation Z and millennial audiences a credit line starting from INR 10,000 going up to INR 10 Lakh.
Slice launched an instant rewards program and slice in 3 feature in June 2021. slice in 3 allows users to convert their monthly bills into 3 months without any extra cost. Post the launch, slice witnessed skyrocketing growth in monthly new card issuance making it the third-largest card issuer in the country, the company claimed.
With more than 3 million registered users and a 30% month-on-month growth, slice aims to revolutionise the payments and credit space in India. The slice super card comes with no hidden charges, joining fees, or annual fees. It is also accepted at 99.95% of merchants across the country that accepts Visa.
Slice founder and CEO Rajan Bajaj said, “The banking industry in India often views credit cards as a loan product instead of a high-frequency payment instrument. Therefore, banks’ main focus is to optimize the fees and portfolios while overlooking the experience. However, we see slice card as a classic payment product, and we are solving it as a customer experience problem with a customer-centric approach in mind.
“I’d have to say, it is like creating art to rebuild a classic payment product coupled with the new-age understanding of consumer experience. It requires great design, a great pool of talent, and in-depth insights into our consumer’s language which are our foundations. This fundraiser is a testament to the strength and success of slice’s products at scale, our strong fundamentals, and our high-value potential. We are thankful for the trust that our investors have placed in slice’s mission of making payments simple.”
Credit solutions (including virtual credit cards) are increasingly gaining prominence as short term credit channels for different segments of the population. Other neobanking companies that targeted younger customers include Fampay, Junio, Yodaa and Fi Money.
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