Fintech Unicorn Slice has raised $50 million as part of its Series C funding round from Tiger Global and prominent investors including Moore Strategic Ventures, Insight Partners, and GMO VenturePartners.
The company plans to use the funds to expand its new UPI product.
Founded in 2016 by Rajan Bajaj, It focuses on new-age millennials and Gen Z customers who have been largely denied credit cards due to inadequate credit scores.
The company also offers discovery and discounts through its commerce platform, Spark, which promotes footfall and purchases among its fellow merchants. These merchant partners also bear the cost of discounts offered to slice-card holders, according to the company.
“Investors continue to back businesses which are doing well. We were well-capitalised from the previous round and have raised the round to grow our UPI product and shore up our balance sheets. Since it was a smaller transaction we were not in touch with a lot of investors,” said, Rajan Bajaj, founder of Slice.
“We were profitable after tax in 2021, however we haven’t been profitable in the last few quarters, since we were scaling up. Our NBFC continues to be profitable and we will see our card business be profitable in the coming months,” he added.
It currently operates an NBFC (Non-Banking Finance Company) branch and distributes co-branded credit cards to users in association with SBM Bank.
Slice currently has over 12 million registered users, and recently launched UPI for its credit product.
“Slice is leading the way for innovation, customer experience, and growth in India’s rapidly developing payments market. We are delighted to continue our partnership with Rajan and his team as they improve and expand payment products with the goal of making money more relatable for the consumer,” said, Alex Cook, partner, Tiger Global.
In November 2021, Slice turned into a unicorn after it had raised $220 million in a funding round from Tiger Global and Insight Partners.
Slice is India’s best credit card challenger to pay bills, manage expenses, and unlock rewards. Their members love us and swear by us. They’re reinventing how traditional credit cards work by offering a simple and transparent app to help our members transact easily. They have about 7 million registered members with an average age of 27, making us a market leader in a niche and growing segment.
They offer up to 2% cashback on every transaction, and their members have the option to convert monthly bills payable into 3 installments, with no extra charges.
They are backed by leading investors such as Tiger Global, Insight partners, Advent International, Blume Ventures, and Gunosy Capital.