The spherical additionally noticed the participation of Higher Capital, Das Capital, EMVC amongst others
The funding will assist slice double its administration group
slice claims to have turned worthwhile
Bengaluru-based digital cost card startup slice has introduced that it has raised INR 46 Cr ($6.07 Mn) in pre-Sequence B spherical of funding led by Japan-based investor Gunosy. The spherical additionally noticed participation from US-based EMVC, Kunal Shah of CRED, Higher Capital and present investor Das Capital.
The corporate stated the funding will assist slice double its administration group, discover banking partnerships to launch co-branded pay as you go playing cards and bank cards and have over 5 lakh customers by the top of FY21.
Earlier in May, Inc42 completely reported that the corporate accredited the supply to lift fairness and debt from Gunosy Inc worth INR 22.49 Cr in a board decision on May 11. Gunosy is choosing up a single fairness share at a face value of INR 1 with a premium of INR 5,388 and 22,49,946 convertible debentures at a face value of INR 100. On June 23, the cash got here within the bank.
The corporate filings declare the funding would assist increase its enterprise. After the funding, Gunosy will maintain an 8.12% stake within the firm. Previous to this, the corporate raised $4.Eight Mn funding from traders like Das Capital, Blume Ventures, Finup amongst others.
Based in 2016 by Rajan Bajaj, slice (earlier Slicepay) is a fintech startup providing credit score options completely for younger customers between the ages of 18 and 29. The corporate has additionally launched a funds card in collaboration with Rupay known as Slice Card, which comes with a pre-approved credit score line.
The cardboard has been designed to particularly serve graduate college students and younger professionals like startup staff, gig employees, freelancers and small enterprise homeowners who’re sometimes underserved by banks. Slice card has a minimal credit score restrict of INR 4K and goes as much as INR 60Ok for college students or INR 1 Lakh for working professionals and freelancers.
Rajan Bajaj, founder and CEO of slice stated, “We are inventing the future of finance for young Indians, who want to understand and relate to financial products just like they would with Snapchat and Instagram. As a young team, we understand this consumer very well and in the last four years, our primary focus has been making youngsters’ financial experience fun and seamless.”
As of March 2020, slice claims to be issuing slice Playing cards at an annual run-rate of over Four lakh new customers and has an NPS of over 70. It additionally claims to have turned worthwhile. Yuki Maniwa, Director of Gunosy stated, “We believe slice has a sustainable advantage as it has decoded young credit users’ demands and has built a deep understanding of credit risk and low-cost distribution using technology.”
The Indian bank card market has grown quickly within the final 5 years, with round 30 Mn distinctive customers and 5 Mn lively new bank card customers yearly. As per DataLabs by Inc42, the credit score demand in India is projected to be worth $1.41 Tn by 2022. The estimated progress fee in credit score demand is 3.73% between FY17 and FY22.