slice Eyes $250–300 Mn To Boost Its Digital Banking Play

slice is reportedly in discussions to raise $250–300 Mn from a group of financial investors and family offices.

According to an ET report, this marks slice’s first major fundraising initiative following its merger with North East Small Finance Bank, which has received approval from the Reserve Bank of India (RBI).

slice has informed the RBI about its fundraising plans for the year.

The Bengaluru-based company has also secured regulatory approval to operate under its new identity, slice Bank, broadening its scope beyond fintech. Its merger with the Assam-based North East Small Finance Bank was approved in October.

Meanwhile, slice has begun rolling out banking services to select user groups, offering competitive interest rates on savings accounts. Backed by Tiger Global, the company plans to expand its physical and digital presence in 2025 and has initiated funding discussions to support this growth.

In addition to its consumer services, slice plans to launch a separate app for merchant lending and payment settlements, providing full-stack solutions to accelerate its fee-based income, as per its approved EGM resolutions. This move positions slice as a direct competitor to platforms like BharatPe, which specialises in merchant lending solutions.

“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 (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.

In October 2024, slice received approval from the National Company Law Tribunal (NCLT) for its merger with North East Small Finance Bank (NESFB). The merger was finalised on October 27, following all regulatory approvals.

The integration combines the operations, assets, and brand identities of both entities into a single, unified banking institution. At the time, the fintech unicorn stated that the merger would enable expanded operations, improved risk management, and better alignment with evolving customer needs. The newly formed entity also aims to strengthen NESFB’s presence in the Northeast.

Recently, slice secured approval to raise INR 71.73 Cr through partly paid-up shares. In June, the company piloted a new lending product, ‘slice Personal Loan,’ offering loans of up to INR 5 Lakh with a tenure of up to 60 months, according to sources.