Tiger Global-Backed slice Rolls Out Its UPI First Account For All Users

Tiger Global-backed fintech unicorn slice on Monday (February 5) said it has launched a unified payments interface (UPI) first prepaid account for all its users, after a three-month beta testing period, primarily available to its existing customer base.

slice’s first account offers a UPI handle (@slice) and a virtual prepaid account which will allow users to add money to the virtual account and spend via UPI or card directly or link to any other bank accounts, the company said in a statement.

It also includes autoload functionality for seamless transactions and automation of recurring payments. Through autoload customers can set a limit and once the balance in the account goes below the limit, it will automatically load the wallet, the statement added.

In May 2022, slice integrated UPI into its app for all existing and waitlisted users, aiming to become a one-stop payment platform.

Founded in 2016 by Rajan Bajaj, slice (previously known as Slicepay) functioned as a buy now pay later (BNPL) platform until FY22. It provided a credit card-based prepaid payment instrument (PPI) that came with no annual fees, interest, or late charges. However, during FY23, slice had to pivot its business after the Reserve Bank of India (RBI) barred NBFCs from offering credit on PPIs.

slice then started offering personal loans and UPI payments services.

In its FY23 financial filing, slice said it derives revenues primarily from internet handling fee, commission income from the services provided through its online platform, and interest and commission income from credit facilities provided to individuals.

Its fee and commission income jumped over 151% year-on-year (YoY) to INR 374.9 Cr in FY23 while interest income on loans surged 252% YoY to INR 471.8 Cr in the year.

Slice earned around INR 459 Cr as interest income on portfolio loans, INR 90.3 Cr as processing fee income, and INR 63.3 Cr as internet handling fees. 

Including other non-operating income and interest income, slice’s total revenue stood at INR 867.8 Cr in FY23 as against INR 292.9 Cr a year ago.

Adding a unique and engaging element, the product incorporates an innovative gaming feature. With each UPI transaction, users have the opportunity to play the “fire” game, providing them a chance to win double the amount of their transactions in cashback. This not only simplifies payments but also adds an element of fun to the overall payment experience.

Garagepreneurs Internet Private Limited (GIPL), the parent entity of fintech unicorn 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.

It must be noted that credit rating agency CARE Ratings, in a report last year, attributed GIPL’s loss in FY23 to higher opex and a sharp reduction in assets under management (AUM) due to the various regulatory changes.

slice’s bottom line took a hit during the year under review despite a 199% jump in its operating revenue to INR 846.7 Cr from INR 283.1 Cr in FY22.

Following the regulatory hurdles and the subsequent changes in its business, slice announced its merger with the North East Small Finance Bank (NESFB) in October last year. The joint venture aims to integrate advanced technology solutions with initiatives aimed at promoting financial inclusion at the grassroots level.

In December, NESFB appointed former Andhra Bank executive Satish Kumar Kalra as its interim MD and CEO. Kalra would spearhead the ongoing merger process between slice and NESFB.