BENGALURU : Slice became the last Indian unicorn after the fintech startup raised $ 220 million for a valuation of just over $ 1 billion.
The fundraising was carried out as part of Slice’s Series B funding round led by New York-based investment firms Tiger Global and Insight Partners.
The cycle also saw the participation of new and existing investors such as Sunley House Capital, Moore Strategic Ventures, Anfa, Gunosy, 8i and Blume Ventures. Flipkart founder Binny Bansal along with other notable Angels also participated in the round.
Slice is the 41st Indian startup to achieve unicorn status this year. A unicorn is a private startup valued at $ 1 billion or more.
Slice, owned by GaragePrenuers Internet Pvt, based in Bengaluru. Ltd, is the 11th fintech startup to become a unicorn this year. With this round, the company has raised around $ 250 million in equity so far.
Slice had raised $ 20 million in June in a funding round led by existing investors Blume Ventures and Gunosy Capital.
Slice plans to use the proceeds from the latest fundraiser to expand its existing lines of business, invest in new products and also expand its engineering and design functions. The company will also use part of the new capital to fund its non-bank financial corporation (NBFC) arm and increase its loan portfolio.
Slice allows users to pay their bills, manage their expenses, and unlock rewards. It focuses on millennials and millennials, with an average age of 27, who have been widely denied credit cards by major banks due to inadequate credit ratings around this demographic. .
The company issues credit and charge cards, âSlice Super Card,â with Visa and SBM Bank India Ltd, enabling them to establish credit scores and earn rewards and discounts on payments.
âAt Slice, we believe we have built a strong business model and will now focus our energies on growing and scaling the platform. We have been careful with our business so far and have burned $ 4.5 million (in capital) over five years. Part of the capital from this fundraiser will be invested in our NBFC, as we need to have our own skin in the game, rather than raising debt alone. The rest will be used to launch new products and grow the team, âsaid Rajan Bajaj, founder and CEO of Slice, in an interview.
Slice is currently working on the introduction of Unified Payment Interface (UPI) based payments on its app, in addition to credit card issuance, Bajaj said.
This year alone, Slice has increased its monthly credit card issuance tenfold, from 20,000 cards in January to nearly 200,000 cards in October.
The line of credit provided by the company on these cards ranges from ??2,000 to ??10 lakh. It has nearly five million registered users on its app.
New card issues and new users for the business are increasing by 40% every month, Bajaj said. He said the company currently has annual revenue of $ 60 million.
âSlice has designed a product that customers love and which we believe will result in continued growth and market share gains. We are excited to partner with Rajan and the team as they expand access to credit and deliver the best customer experience, âsaid Alex Cook, Partner at Tiger Global.
The company also plans to introduce new products around wealth management and commerce, Bajaj said. He gave no timeline.
âSlice targets an under-penetrated market in India and enables users to make online payments, pay bills and more. There is a great opportunity in the credit and payments space in India, and Slice is well positioned to become the industry leader. We look forward to this partnership with Slice as they continue to grow and develop, âsaid Deven Parekh, Managing Director of Insight Partners.
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