Fintech startup Slice obtains unicorn status after USD 220 Mn funding

India’s fintech startup Slice has reportedly raised USD 220 million in Series B funding led by Tiger Global and Insight Partners. Other investors that participated in the fundraising included Advent International’s Sunley House Capital, Anfa, and Moore Strategic Ventures, as well as some existing investors like Blume Ventures, Gunosy, and 8i.

Slice's valuation has now surpassed USD 1 billion, and the new funds will be used to expand its product portfolio, which includes UPI apps, news cards directed to teenagers, and a decentralized product called '&ID.'

By offering a unique underwriting system, Slice has tapped the massive credit card market in India, which covers only a tiny fraction of the population in its credit rating system.

Slice's founder Rajan Bajaj stated that the company has been making revolutionary changes in India’s credit card system by engaging with customers on Snapchat and Instagram, as it majorly targets tech-savvy professionals. Currently, the average age of a Slice customer is 27 years old.

Sources claimed that Slice has introduced a USD 27 card limit for the country's 200 million people. It has a user base of 5 million users because of this feature, which has been significantly gaining traction due to its multiple installment bill payment facilities spread over three months.

Slice has become India's third-largest card issuer, with over 200,000 cards issued each month and an average revenue run rate of USD 60 million.

Tiger Global partner Alex Cook expressed his excitement to partner with Slice, which has managed to deliver the best customer experience while continuing to increase its market gains.

As per Deven Parekh, the Managing Director at Insight Partners, the fintech startup will become an industry leader if it continues to be scaling up these strengths.

In an effort to expand, Slice is now looking to hire more people by offering them a three-day work week with consistent pay and benefits to attract talent who want to work on other opportunities as well.

Source credit:

https://techcrunch.com/2021/11/28/slice-220-million-fundraise-credit-card-challenger-india/