slice Completes Bank Merger To Boost Presence In NE

SUMMARY

The merger of slice and NESFB unifies the operations, assets, and brand identities of both entities into a single, integrated banking institution

The newly merged company will be able to expand its operations, to meet evolving customer needs, and enhance risk management

The fintech startup and the bank publicly announced the proposed merger in October 2023

Months after receiving the nod from National Company Law Tribunal (NCLT) for the merger of fintech unicorn slice with North East Small Finance Bank (NESFB), the fintech unicorn has confirmed that the merger was completed on October 27 (Sunday) following all regulatory approvals.

This merger unifies the operations, assets, and brand identities of both entities into a single, integrated banking institution, slice said in a statement.

The company said that the newly merged entity will be able to expand its operations, to meet evolving customer needs, and enhance risk management. The newly formed entity aims to strengthen NESFB’s presence in the Northeast region.

Additionally, with the help of adopting advanced technology and digital solutions, the bank looks to enhance financial inclusion, stimulate economic development in the Northeast, and expand its reach across India.

“We’re especially committed to strengthening our roots in the Northeast, striving to bring more people into the formal banking system. We’ll place a strong emphasis on delivering exceptional customer experience, while maintaining robust risk management and governance as the foundation of our operations,” said Rajan Bajaj, founder and chief executive of slice and executive director of the merged entity.

The fintech startup and the bank publicly announced the proposed merger in October 2023.

Both entities have received approvals from the Competition Commission of India (CCI), the Registrar of Companies (RoC), and the Regional Director (RD), as well as no objection certificates from the Reserve Bank of India (RBI) and the Income Tax Department.

Founded in 2016 by Rajan Bajaj, slice (previously known as Slicepay) started operations as a buy now pay later (BNPL) platform, offering a credit card-esque prepaid payment instrument (PPI).

This new update comes at a time when there are several ongoing developments in the company.

For instance, the Bengaluru-based fintech startup recently secured approval to raise INR 71.73 Cr (around $8.6 Mn) through partly paid-up shares, a few weeks ago.

In June, slice was piloting a new lending product under the name ‘slice personal loan’, where users could avail a loan of up to INR 5 Lakh for a tenure of 5 years (60 months), sources told Inc42.

Updated at 12:44 PM