Slice Concludes $30 Million Debt Round from Existing Investor

Slice, an innovative consumer lending and payment services firm, recently finalized a US$ 30 million debt funding from Neo Asset Management. The equity funding announced in July 2024 is a significant phase in Slice’s continuous development of its financial service offerings and brand presence.

Debt Round

The $30 million debt round was completed in two closes. The first tranche was $20.5 million and was attracted in June 2024. The second tranche of $8 million or about Rs 65 crore was arranged in July 2024. To meet the said requirement, the board at Slice passed a special resolution to issue 650 non-convertible debentures (NCDs) at a face value of Rs 10,00,000 each. These debentures are issued at a fixed interest rate of 15% and have a maturity period of 21 months.

This debt round is rather important because it shows that existing investors still believe in theSlice’s business plan and its ability to expand. Neo Asset Management, which has been an active backer of Slice for a long time, was instrumental in this funding round. The proceeds will be used for corporate purposes and operational funds that will help Slice expand its business and develop additional products. 

Slice’s Growth Strategy

Launched by Rajan Bajaj, Slice has positioned itself as a prominent contender in the emerging fintech sector, especially within the millennial demographic. It provides a retail and prepaid card through which students and salaried personnel can buy products and services online and pay on an EMI basis. This also makes transactions easier while helping users improve their credit standing.

Slice has shown good growth and is now at a scale of Rs 843 crore for the year ending March 2023. Despite a 59.8% increase in losses to Rs 406 crore, the company’s revenue growth shows it has more and more users and it is penetrating the market. Another proof of Slice’s strategic actions in improving and providing financial services and products is the recent merger with North East Small Finance Bank (NESFB).

Image Source: Slice  

Market Position

Slice has the resources to advance its position in the market and achieve higher organic growth after the completion of this debt round. There is significant growth observed in the fintech industry in India owing to rising digitalization and the need for innovative financial services. Nevertheless, due to Slice’s focus on its USP and its customer-first business model, it has been able to find a place for itself in this intensely competitive market.

Future Prospects

The company has targeted millennials and has presented itself as a company that can provide financially flexible opportunities. With the obtained funds, Slice plans to improve its technological platform, diversify its product offerings, and attract more customers. The cooperation with Neo Asset Management will also be beneficial to Slice as the company enters its growth stage. By having a stable background and well-defined goals for the future, Slice is ready for the next level of growth in fintech. Its vision, effective capital investments, and valuable collaborations will remain instrumental in defining the evolution of financial services in India. 

Conclusion

The successful conclusion of the $30 million debt round from Neo Asset Management can be seen as a major milestone for Slice. Such funding not only signals the continuation of the belief and support of existing investors but also brings the essential capital needed to propel the company forward. While Slice is rapidly growing its services in the fintech market, it still plays the role of integrating transparent and convenient financial solutions.