Payments and credit startup slice, formerly known as SlicePay, Thursday announced that it has raised about $6 million (Rs 46 crore) in a pre-Series B round of funding led by Gunosy, the investment and consulting arm of Japanese news and technology services company Gunosy Inc.
The Bengaluru-based company will use the funding proceeds to double its management team and explore banking partnerships to launch co-branded prepaid cards and credit cards. The company is targeting to have over 5 lakh users by the end of FY21.
“We are inventing the future of finance for young Indians, who want to understand and relate to financial products. 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,” Rajan Bajaj, founder and CEO of slice said.
Founded by Bajaj in 2016, slice has built a data-driven financial product – the slice card, a physical and a virtual card, designed exclusively for young customers in India that includes freelancers, college students, and salaried professionals. It is present across 18 cities in India including Bangalore, Mumbai, Chennai and Delhi.
As of March 2020, slice claims to be issuing slice cards at an annual run-rate of over 4 lakh new users and has an NPS of over 70. It further claims to have become profitable within four years of operations and is among the top 10 issuers of cards in India.
According to slice, the Indian credit card market has grown rapidly in the last 5 years, with around 30 million unique users and 5 million active new credit card users annually. Quoting an SBI report, it said, that the proportion of credit card originations 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.
“We believe slice has a sustainable advantage as it has decoded young credit users’ demands and has built a deep understanding of credit risk and low-cost distribution using technology,” Yuki Maniwa, Director of Gunosy said.
slice also counts Blume Ventures, Traxcn Labs, China’s Finup, and Russia’s Simile Ventures among its list of backers.