Fintech Unicorn Slice to Merge with North East Small Finance Bank
The Indian financial services industry is poised to witness a mega-merger, with fintech unicorn Slice amalgamating with North East Small Finance Bank (NESFB). The two entities acknowledged the matter on Wednesday, stating that the move would leverage the combined entity”s banking prowess with Slice”s digital efficiency and NESFB”s banking foundations.
The merger, which has received the Reserve Bank of India”s (RBI) nod, will widen financial inclusion. According to analysts, this is a significant development because it is seen as a vote of confidence from the RBI, the country”s banking regulator, in the growing Indian fintech ecosystem.
The merger is subject to shareholders” consent and other regulatory approvals, and both entities have declined to disclose the specifics of the deal. Customers of both entities will have access to a wide range of products and omni-channel services in the future, and both entities may transition customers smoothly in the future.
Slice had earlier acquired a 10% stake in Guwahati-based NESFB. Slice is a consumer payments and lending unicorn backed by investors such as Tiger Global and Blume Ventures. Its services primarily focus on millennials and Gen Z. The company had earlier ceased issuing prepaid cards with low credit lines to customers after the RBI”s denial in its last year guidelines for digital lending.
Slice is currently valued at $1.5 billion, having last raised $50 million in funding led by Tiger Global in June last year. Investors have together pumped $290 million into the fintech firm as of now.
