SUMMARY
- Slice raises nearly $36 million via convertible debt, led by several family trusts, Blume Ventures, and 8i Ventures.
- Company reports significant revenue growth but also a rise in losses due to increased costs.
- Approved merger with North East Small Finance Bank reflects Slice’s strategic expansion plans.
Slice, a consumer lending and payments startup, is set to raise Rs 300 crore (approximately $36 million) through a round of convertible debt financing.
The funding round is co-led by Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust, each contributing Rs 30 crore. Significant participation also came from Blume Ventures and 8i Ventures, which invested Rs 27 crore and Rs 25 crore, respectively.
The financing was enabled by a special resolution passed by the board of Slice, approving the issuance of up to 30,000 compulsory convertible debentures (CCDs) at an issue price of Rs 100,000 each. Additional contributions were made by Inland Financial Services, Mintcap Enterprises, Stargazer Ventures, Roger Bravo Advisors, and Broadbridge Capital Management. Several individual investors, including Krishna Kumar Karwa, Aditya Jadhav, Aryaman Jadhav, Zahir Merchant, Shikha Begwani, Nilesh Mahendra Popat, Khyati Vyas, Simran Jhaveri, and Kalpana Kiran Maniar, also participated in the round.
Slice, founded by Rajan Bajaj, offers physical and virtual cards targeting millennials, allowing students and salaried professionals to purchase products and services online via estimated monthly installments (EMIs). The platform helps users build credit scores through regular app usage.
The company reported a significant revenue increase in FY23, growing threefold to Rs 847 crore compared to Rs 283 crore in FY22. However, there was also a 59.8% rise in losses, which grew to Rs 406 crore from Rs 254 crore in FY22, primarily due to increased employee benefits and non-performing assets (NPAs).
Having raised nearly $400 million to date, including a substantial $220 million Series B round led by Tiger Global and Insight Partners, Slice continues to attract substantial interest. According to data from TheKredible, Tiger Global and Insight Partners currently hold stakes of 7.9% and 6.6%, respectively, while founder and CEO Rajan Bajaj maintains a 9.3% stake.
Slice also recently obtained approval from the National Company Law Tribunal (NCLT) for its merger with North East Small Finance Bank (NESFB), announced in October 2023. The Bengaluru-based firm had previously acquired a 5% stake in the Guwahati-headquartered bank for around $3.42 million in March last year.
