BENGALURU: Online credit and payments startup Slice, formerly known as SlicePay, has raised ₹46 crore in a pre-series B round led by Japan-based investor Gunosy Capital.
The round also saw participation from US-based EMVC, Kunal Shah of CRED, Better Capital and existing investor Das Capital. This round of funding will help Slice double its management team, explore banking partnerships to launch co-branded prepaid cards and credit cards.
Founded in 2016, Slice offers a pre-approved credit product targeted at students. The app is built on the premise that students and millennials are the biggest consumers of delivery apps, online shopping, travel and entertainment but may not always have cash-in-hand to buy something of their choice immediately.
Slice offers credit to consumers using both physical and a virtual card, designed exclusively for young customers in India that include freelancers, college students, and salaried professionals. It enables students to buy daily goods and services online from various platforms. Its partners include Flipkart, Amazon, BookMyShow, Myntra, Uber Eats, and Paytm.
The credit offered can go up to ₹60,000 and for which the company takes no collateral, along with adjustable repayment tenures. It doesn’t offer direct cash to students but only helps them buy products and services. The transaction amounts can also be converted into EMIs.
The startup has been rapidly growing in the last two years and as of March, Slice has issued physical and digital cards to over 4 lakh new users annually. It also claims to be profitable within four years of operations.
The Indian credit card market has grown rapidly in the last 5 years, with around 30mn unique users and 5mn active new credit card users annually. An SBI report said the proportion of credit cardholders among millennials (persons below 30 years of age) has increased over the last four years to 35.0% in FY19 from 19.0% in FY15, while the share of customers below 25 years of age has increased ten-fold in the same period.
“As a young team, we understand this consumer very well and in the last four years, our primary focus has been making youngsters' financial experience fun and seamless. As we accelerate towards our next phase of growth, support from new investors like Gunosy, EMVC, Better Capital and Kunal will be absolutely critical and will enable us in the mission of becoming the go-to fintech destination of Young India," said Rajan Bajaj, founder and chief executive of Slice in a statement.