Indian Fintech Unicorn Slice Acquires Bank Share
Indian fintech unicorn Slice Acquires Bank Share in the Indian North East Small Finance bank for the unicorn fintech startup’s journey amidst rising obstacles from the central bank that have brought down many young companies.
According to a regulatory filing, the startup with its headquarters in Bengaluru paid $3.42 million for a 5% share in the small financing bank with its headquarters in Guwahati in September.
The funding comes at a time when the Reserve Bank of India has severely restricted the growth of numerous fintech businesses engaged in the card and loan industries by requiring strict adherence to harsh new regulations.
It’s not immediately clear how Slice, a $1.55 billion business with backing from Tiger Global, Insight Partners, Blume Ventures, and Axis Bank, would benefit from acquiring a stake in a bank, despite the fact that doing so is admittedly an uncommon and ostensibly significant milestone for a startup.
In response to a request for comment, the corporation remained silent.
The second-most populated country in the world is going through an exciting period right now as banks and fintech companies look for methods to enhance their interactions. In recent years, as entrepreneurs sought to expand their operations, Federal Bank and SBM Bank India courted them as clients.
ICICI and HDFC, two gradually larger banks, have increased their discussions with younger companies. Recent investments have been made in Mintoak, a SaaS platform that offers merchant services in India and other markets, by HDFC, the largest private bank in India.
TechCrunch previously reported that the Indian branch of SBM Bank started talking to investors late last year in an effort to raise funds with the goal of becoming one of the top providers of banking as a service in the nation. Shivalik Small Finance Bank received funding from Accel and Quona in 2017.
Yet, a recent increase in the number of predatory China-linked loan apps on the South Asian market has forced the central bank to enact regulations that have a significant impact on many businesses, including those not engaged in dishonest business practices.
North East Small Finance Bank, a division of RGVN (NE) Microfinance that was established in 2016, serves clients in the nation’s north-eastern region. Among its supporters are Bajaj Group, SIDBI Venture Capital, and Pi Ventures.