Fintech unicorn Slice is merging with Guwahati-based North East Small Finance Bank (NESFB) after receiving approval from the Reserve Bank of India, the fintech company said in a statement.
Slice, a Bengaluru-based credit and payments startup, which also has an NBFC licence, said the merger with the small finance bank will allow the combined entity "to better serve their shared mission and reach more consumers who currently lack access to basic banking services."
The merger and shareholding details are not known yet, but it is expected that Slice will own a majority stake in the combined entity.
Slice had acquired a 5% stake in the bank last year. The investment valued the small finance bank at about $68 million.
Slice counts Tiger Global, Insight Partners, EMVC, Blume Ventures among its backers. It was last valued at about $1.5 billion in a funding round last year.
According to Slice, this merger, pending requisite shareholders' consent and other regulatory approvals, brings together Slice’s digital prowess and NESFB’s grassroots banking foundation. The combined entity supercharges its commitment to financial accessibility and will bring an unparalleled digital banking experience to its customers.
Commenting on the merger, Slice founder and CEO Rajan Bajaj said, “We will further strengthen our risk underwriting through the use of technology and data, and always keep customers at the heart of our decisions. We see this as an opportunity to build a highly inclusive and responsible bank, offering an unparalleled experience, underpinned by robust risk management and strong governance."
In the coming months, there will be an integration process with both entities working to ensure a smooth transition for all customers.
Earlier, Slice used to issue credit over prepaid cards to students and young customers. However, after the RBI issued a circular banning credit over PPI last year, all fintechs, including Slice, had to stop issuing prepaid cards loaded with credit line.
