Slice secures $ 20 million from Gunosy and Blume Ventures
BENGALURU : Intech start-up Slice raised $ 20 million in a funding round led by existing investors Blume Ventures and Gunosy Capital, founder and CEO Rajan Bajaj said.
Slice focuses on Gen Y and Gen Z users with an average age of 23 with inadequate credit scores and therefore ignored by major credit card issuers. Slice issues them credit and charge cards in partnership with Visa and SBM Bank India Ltd, which allows them to establish credit scores and receive rewards and discounts on payments.
It provides lines of credit of ₹10,000-10 lakh, and also allows users to pay bills, manage expenses, and earn rewards.
“Banks are reluctant to issue a credit card to millennials because they don’t have a credit score, and the cost of acquiring customers for this segment can be high, due to the required underwriting. Slice wants to change this paradigm for millennials. Currently, Slice is the primary payment card for 55% of its users, and 45% of our customers have never used a credit card before, ”Bajaj said.
He said Slice was largely cash positive and profitable on an earnings before interest, taxes, depreciation and amortization basis in 2019-2020.
The company recently introduced Slice Rewards, where members can get up to 2% rewards on every card transaction, instantly redeemable for cash, and Slice in 3, which allows users to split their card bills into EMI.
The Slice card is accepted in offline payment points through its partnership with Visa. Today, it has a payment acceptance network of 5.5 million merchants, 95% of which are physical points of sale. It also offers users free EMI products for online merchants. The company plans to introduce rewards for Unified Payment Interface (UPI) related transactions in the coming months.
Slice continues to take on debt to fuel its credit operations. His non-bank financial corporation (NBFC) arm raised ₹165 crore of loan capital in 2020-2021.
“Slice’s biggest advantage is their understanding of millennials and millennials. Their approach to solving their problems has been truly refreshing and creating something simple and hassle-free has been in their DNA since its inception. The Super Slice Card has the potential to fundamentally change the way the next generation views the concept of credit cards and we are happy to be a part of their growth story, ”said Shinji Kimura, President and CEO of Gunosy Inc.
Never miss a story! Stay connected and informed with Mint. Download our app now !!