slice Gets NCLT Nod For Merger With North East Small Finance Bank

SUMMARY

The NCLT’s Guwahati bench gave its sanction for the scheme of arrangement and amalgamation between slice and North East Small Finance Bank

In March this year, the Competition Commission of India greenlit the proposed merger

Having received the NCLT’s approval, the companies will announce the effective merger date and details of the merged entity in the coming months

The National Company Law Tribunal (NCLT) has given its nod for the merger of fintech unicorn slice with North East Small Finance Bank (NESFB), months after the Competition Commission of India (CCI) greenlit the proposed merger.

The Tribunal’s Guwahati bench gave its sanction for the scheme of arrangement and amalgamation involving slice parent Garagepreneurs Internet Pvt Ltd (GIPL), GIPL’s NBFC Quadrillion Finance Pvt Ltd, the fintech unicorn’s subsidiary Intergalactory Foundry Pvt Ltd, RGVN (North East) Microfinance Limited, and NESFB on August 19 (Monday), slice said in a statement

With this, the companies are set to announce the effective merger date and details of the merged entity in the coming months.

The customers of the combined entity can look forward to an expanded range of products, enhanced omni-channel offerings, and a seamless banking experience, the statement said.

Since the announcement of the proposed merger in October 2023, the entities have received approvals from the 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.

“This merger represents not just a milestone, but a testament to our shared dedication to redefining banking experiences and expanding accessibility for all. We are excited to merge with NESFB, and together, we will continue to innovate and strengthen financial access, technology driven banking systems, and customer service,” slice founder and CEO Rajan Bajaj said in the statement.

The latest development comes a month after slice bagged $20 Mn debt from Neo Asset Management’s Credit Opportunities Fund.

slice currently offers UPI payments, consumer credit, and a prepaid payment banking account through its app.

Founded in 2016 by 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). However, it had to change its business model after the RBI barred NBFCs from offering credit on PPI.

The parent entity of slice posted a 60% jump in its consolidated net loss to INR 405.8 Cr in the financial year 2022-23 (FY23) from INR 253.7 Cr in the previous fiscal year.