Slice Merges with North East Small Finance Bank, Aims for Expanded Financial Inclusion
In a significant development, Fintech unicorn Slice has received the approval of the National Company Law Tribunal (NCLT) to merge with Guwahati-headquartered North East Small Finance Bank (NESFB). The merger was first announced in October 2023 and marks a crucial step towards creating a stronger and more inclusive financial ecosystem in India.
Benefits of the Merger
The combined entity will leverage advanced technology and deep community understanding to foster financial inclusion across the nation. Customers can look forward to an expanded range of products, enhanced omni-channel offerings, and a seamless banking experience.
Key Highlights
- Slice acquired a 5% stake in NESFB in March last year for approximately $3.42 million.
- The NCLT sanctioned the scheme of arrangement and amalgamation involving Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and North East Small Finance Bank Limited.
- Slice and NESFB have received approvals from the Competition Commission of India (CCI) and the Registrar of Companies (RoC). They have also received no-objection certificates from the Reserve Bank of India (RBI) and the Income Tax Department.
- The development comes soon after Slice concluded a $30 million debt round, raising its total funding to $340 million. The company was last valued at over $1.5 billion during the Series C round in November 2021.
Merger Progresses as Slice Posts Strong Growth
Slice recorded a three-fold jump in its revenue to Rs 843 crore in FY23 while losses grew 59.8% to Rs 406 crore. The Bengaluru-based company managed to scale even after facing disruption from RBI’s change in rules for card issuers. It is yet to file its annual financial results for FY24.
