BENGALURU: On-line credit score and funds startup Slice, previously often known as SlicePay, has raised ₹46 crore in a pre-series B spherical led by Japan-based investor Gunosy Capital.
The spherical additionally noticed participation from US-based EMVC, Kunal Shah of CRED, Higher Capital and present investor Das Capital. This spherical of funding will assist Slice double its administration group, discover banking partnerships to launch co-branded pay as you go playing cards and bank cards.
Based in 2016, Slice affords a pre-approved credit score product focused at college students. The app is constructed on the premise that college students and millennials are the most important shoppers of supply apps, on-line procuring, journey and leisure however may not all the time have cash-in-hand to purchase one thing of their alternative instantly.
Slice affords credit score to shoppers utilizing each bodily and a digital card, designed completely for younger prospects in India that embody freelancers, faculty college students, and salaried professionals. It allows college students to purchase every day items and companies on-line from varied platforms. Its companions embody Flipkart, Amazon, BookMyShow, Myntra, Uber Eats, and Paytm.
The credit score provided can go as much as ₹60,000 and for which the corporate takes no collateral, together with adjustable reimbursement tenures. It doesn’t supply direct cash to college students however solely helps them purchase services and products. The transaction quantities may also be transformed into EMIs.
The startup has been quickly rising within the final two years and as of March, Slice has issued bodily and digital playing cards to over four lakh new customers yearly. It additionally claims to be worthwhile inside 4 years of operations.
The Indian bank card market has grown quickly within the final 5 years, with round 30mn distinctive customers and 5mn energetic new bank card customers yearly. An SBI report stated the proportion of credit score cardholders amongst millennials (individuals beneath 30 years of age) has elevated during the last 4 years to 35.0% in FY19 from 19.0% in FY15, whereas the share of consumers beneath 25 years of age has elevated ten-fold in the identical interval.
“As a younger group, we perceive this shopper very nicely and within the final 4 years, our major focus has been making children’ monetary expertise enjoyable and seamless. As we speed up in direction of our subsequent section of progress, assist from new traders like Gunosy, EMVC, Higher Capital and Kunal will probably be completely crucial and can allow us within the mission of changing into the go-to fintech vacation spot of Younger India,” stated Rajan Bajaj, founder and chief government of Slice in an announcement.