The Reserve Bank of India has given permission for fintech unicorn Slice to merge with North East Small Finance Bank (NESFB), a bank with headquarters in Guwahati, the business announced. The merger with the small financing bank will enable the combined business to "better serve their shared mission and reach more consumers who currently lack access to basic banking services," according to Slice, a Bengaluru-based credit and payments startup that also holds an NBFC licence.
Although the merger and shareholding arrangements have not been finalised, it is anticipated that Slice will hold the majority of the new company's shares. Last year, Slice bought a 5% interest in the bank. The little finance bank was worth roughly $68 million after the transaction. Tiger Global, Insight Partners, EMVC, and Blume Ventures are a few of Slice's investors. In a fundraising round last year, it was last valued at approximately $1.5 billion.
Slice, this combination will combine NESFB's community banking origins and Slice's digital ability, subject to the necessary shareholder approval and other regulatory approvals. The combined company will give its consumers an unmatched digital banking experience while stepping up its commitment to financial accessibility.
Rajan Bajaj, the founder and CEO of Slice, commented on the merger, saying, "We will employ technology and analytics to further strengthen our risk underwriting while always keeping our consumers at the centre of our choices. We see this as a chance to create a bank that is incredibly inclusive, accountable, and offers an unmatched experience, all while being supported by excellent risk management and strong governance.
Both organisations will be working to provide a seamless transition for all clients during the upcoming months as part of the integration process. Prior until now, Slice offered credit to young and student customers via prepaid cards. All fintech companies, including Slice, were forced to stop offering prepaid cards loaded with credit line after the RBI issued a circular last year outlawing credit over PPI.
