Monday, February 10, 2025
HomeStart Upslice Bank eyes $250M to fuel digital banking expansion

slice Bank eyes $250M to fuel digital banking expansion

slice is in active talks to secure $250–300 million from financial investors and family offices, aiming to accelerate its digital banking expansion. This marks its first major fundraising effort after merging with North East Small Finance Bank, which received approval from the Reserve Bank of India (RBI).

Slice has already notified the RBI about its fundraising plans for this year. The Bengaluru-based company also got regulatory clearance to operate under its new name, slice Bank, allowing it to expand its focus beyond fintech into digital banking. In October, the RBI approved its merger with the Assam-based North East Small Finance Bank.

Currently, slice is rolling out banking services for select users, offering attractive interest rates on savings accounts. Backed by Tiger Global, the company plans to enhance its digital banking and physical presence in 2025. To fund this growth, it has started raising capital.

In addition to its consumer services, slice aims to launch a dedicated app for merchant lending and payment settlements. This app will provide full-stack solutions, helping the company boost its fee-based income. With this move, slice directly competes with platforms like BharatPe, which also focuses on merchant lending.

“They (slice) are about to start expanding operations with the critical approvals in the new identity, which for a fintech startup is noteworthy. It intends to be a national digital small finance bank,” a person aware of the matter told ET.

“There are fintech-focused funds as well as family offices of both new-age and traditional business houses that have held talks with the bank for the new funding round,” another person aware of the matter said.

Founded in 2016 by Rajan Bajaj, slice began as a “buy now, pay later” platform under the name slicepay, offering prepaid payment instruments similar to credit cards. The company is undergoing several developments, signaling a transformative phase.

In October 2024, the National Company Law Tribunal (NCLT) approved slice’s merger with North East Small Finance Bank, which was finalized on October 27. This merger unified the operations, assets, and branding of both entities into one banking institution. 

slice announced that the merger would support expanded operations, better risk management, and enhanced customer service. It also plans to strengthen NESFB’s presence in the Northeast.

Recently, slice received approval to raise ₹71.73 crore through partly paid-up shares. Earlier in June, it introduced ‘slice Personal Loan,’ a lending product offering loans of up to ₹5 lakh with a tenure of up to 60 months.

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BRL Editorhttps://businessreviewlive.com
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