Exclusive: slice In Talks To Raise $55 Mn At $1.8 Bn Valuation

Fintech Unicorn slice’s Net Loss Rises To INR 405.8 Cr In FY23

SUMMARY

slice is raising around $55 Mn-$60 Mn from its existing investors including Tiger Global and Insight Partners

The startup’s fresh round will value slice in between $1.8 Bn to $2 Bn

Four months back slice entered the unicorn club after raising $220 Mn in Series B round

Bengaluru-based fintech unicorn slice is in talks to close $55 Mn in the first tranche of its bigger Series C round. People aware of the development told Inc42 that the startup is raising the fresh round at a valuation between $1.8 Bn and $2 Bn. The round will see participation from existing investors such as Tiger Global,Insight Partners along with some new investors coming in.

Another person aware of the development said the startup is raising the new round for acquisition purposes. The startup already owns NBFC – Quadrillion Finance Private Limited and Trustio – a peer-to-peer lending firm.

The acquisition will be announced within the next 5-6 months.

The source further added that the startup is currently in talks with investors for raising $150 Mn in its Series C round. “The company is having talks with investors to raise a new round now,” said a person within the company.

Questions sent to slice, and Blume Ventures, one of the early investors in the startup didn’t elicit any response.

The fresh development comes almost after four months when slice achieved the unicorn status with raising $220 Mn. The round was led by New York-based hedge fund Tiger Global along with Insight Partners.

The round also saw investment from investors including Advent International’s Sunley House Capital, Moore Strategic Ventures, Anfa, Gunosy among others. Its existing investors Blume Ventures and 8i also participated in that round.

Founded in 2016 by Rajan Bajaj, slice (earlier Slicepay) is a fintech startup offering credit solutions targeting young consumers between the age of 18 and 29. Since its inception, the fintech startup has raised about $270 Mn in funding and during its last round its valuation was pegged at around $1 Bn.

The fintech startup issues credit cards and payments cards to this segment in partnership with Visa and SBM Bank, allowing this cohort to build a good credit score, while also offering rewards and discounts from payments. The fintech startup provides a credit line starting from INR 10,000 going up to INR 10 Lakh.

Apart from offering a credit line, the startup is also in the process of launching its UPI product. Reportedly, slice is currently testing UPI payments method within their employees. Once the Bengaluru-based startup launches its UPI payments product officially, it will compete against fintech giants such as Walmart-backed PhonePe, Google’s Gpay, Meta’s WhatsApp, and Vijay Shekhar Sharma’s Paytm.

The startup saw its losses climbing up to INR 8.9 Cr in FY21, a 5X jump from INR 1.8 Cr it incurred in FY20. Its revenue from operations also grew by 18.4% to INR 35.3 Cr in FY21 from INR 29.8 Cr in FY20.

slice’s expense shot to INR 47.8 Cr in FY21, a significant jump from INR 35.7 Cr it spent in FY20.

It competes against the likes of Uni Card, Karbon Card, Kodo, among others.

Update | 26th April, 4:20 PM

Story updated with additional inputs from Inc42 sources.