Indian unicorn Slice to merge with local bank after obtaining RBI approval

Photo credit: Slice

Slice, an India-based fintech unicorn, is merging with North East Small Finance Bank (NESFB). The announcement comes after the two firms obtained a rare nod from the Reserve Bank of India (RBI).

The merger is pending shareholder consent and other regulatory approvals. In a statement, Slice said that the integration process will take place “in the upcoming months.”

Following the deal, Slice will acquire NESFB’s community-centric banking foundation. As a small finance bank from northeastern India, NESFB provides financial services to underserved and unbanked regions.

Over a year before the merger, Slice acquired a 5% stake in NESFB for US$3.4 million.

“We see this as an opportunity to build a highly inclusive and responsible bank offering an unparalleled experience, underpinned by robust risk management and strong governance,” said Rajan Bajaj, founder and CEO of Slice.

Securing approval from the RBI for the deal is significant news for the banking sector in India given its heavy regulation, particularly concerning banking licenses. In July, the RBI announced that it rejected three applications for small finance bank licenses, following the rejection of two other applications last year.

In 2021, Slice raised US$220 million in a series B round led by Tiger Global and Insight Partners, which propelled its valuation to over US$1 billion. It then secured US$50 million in a series C round in June 2022 at a valuation of US$1.5 billion.

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