BENGALURU — Digital banking player Slice Small Finance Bank has secured approximately $100 million (₹950 crore) in a fresh institutional funding round. The round values the firm at $450 million to $470 million—marking a sharp 68% reset from its peak $1.5 billion valuation during the 2021–2022 fintech boom.
The round marks Slice’s first major institutional fundraise since completing its landmark merger with Guwahati-based North East Small Finance Bank (NESFB).
Investment Breakdown & Key Backers
According to regulatory filings with the Registrar of Companies (RoC), the financing combines both primary capital injection and secondary share sales:
Compulsorily Convertible Debentures (CCDs): Slice's board approved issuing 40,347 CCDs worth ₹403.47 crore (~$42.5 million).
Partly Paid Shares: The company approved an allotment of partly paid equity shares worth ₹81.5 crore.
Lead Investors: Indian wealth management giant Neo Wealth led the transaction with roughly $40 million pooled from HNI and UHNI clients.
Other Participants: Existing backer Moore Strategic Ventures (investing ₹106 crore), Japan’s Kado Global (₹95 crore), Blume Ventures (₹44 crore), stockbroking app Dhan's parent company Raise Financial (₹40 crore), and PixelSky Capital (₹25 crore).
From Fintech Unicorn to Regulated Bank
Founded in 2016 by Rajan Bajaj as SlicePay, the startup initially gained massive traction offering credit lines and "buy now, pay later" (BNPL) cards tailored to students and young professionals. Slice officially entered the unicorn club in November 2021 after a $220 million round led by Tiger Global and Insight Partners.
However, regulatory shifts by the Reserve Bank of India (RBI) on prepaid payment instruments forced Slice to pivot its business model. In October 2023, the startup announced a strategic merger with NESFB to acquire an official banking license. The merger became fully effective in late October 2024, giving birth to Slice Small Finance Bank.
Financial Turnaround and Future Outlook
While the latest $450 million valuation reflects a broader market correction across Indian tech startups accepting "down rounds," Slice’s core underlying fundamentals point to a successful banking transition.
Profitability: Slice turned net profitable in FY26, reporting ₹48.4 crore compared to a loss of ₹217 crore in FY25. Momentum continued into Q1 FY27, with net profits reaching ₹50.9 crore.
Revenue Growth: Total income for Q1 FY27 jumped 38.6% year-on-year to ₹413.8 crore.
Asset Quality: Gross Non-Performing Assets (GNPAs) improved from 6.31% down to 4.36%. Total deposits doubled to ₹5,765 crore, backed by strong CASA (Current Account Savings Account) growth.
The newly acquired capital will be deployed to bolster capital adequacy buffers, expand physical branch networks, and fund ongoing lending growth across its savings, fixed deposit, and UPI payment operations.