Indian fintech startup Slice secures $10m in debt funding

Slice, an India-based fintech startup that calls itself a “credit-card challenger,” has raised 750 million rupees (approximately US$10 million) in debt from different financial institutions including Northern Arc Capital, Niyogin Fintech Limited, Credit Saison India, and Vivriti Capital.

Founded in 2016, Slice focuses on younger consumers, who may not be eligible to get credit cards from traditional banks. It offers a Visa-powered card available as a physical card and a virtual card.

Photo credit: Slice

Some of the perks of using the Slice card are up to 2% cashback on every transaction, splitting bills over three months without any extra charges, and a credit limit spanning from 10,000 rupees (US$134) to 1 million rupees (US$13,400). Users also don’t have to pay hidden charges as well as joining and annual fees.

Slice says its card is accepted by 99.95% of merchants that accept Visa.

According to the startup, it has onboarded over 3 million registered users with an average age of 23, and the top 40% of its members make more than 15 transactions per month. The company aims to acquire 50,000 new card users by September.

“The banking industry in India often views credit cards as a loan product instead of a high-frequency payment instrument. Therefore, banks’ main focus is to optimize the fees and portfolios while overlooking the experience,” Slice CEO and founder Rajan Bajaj said in a statement.

In June, Slice raised $20 million in a funding round led by existing investors Blume Ventures and Gunosy Capital. The company has amassed US$68.5 million to date, including equity and debt fund rounds.

Currency converted from Indian rupee to US dollar: US$1 = 74.28 rupees