Slice, a noteworthy fintech unicorn, has completed its merger with North East Small Finance Bank (NESFB), and is effective from October 27, 2024. This is a big milestone which comes two months after Slice successfully secured approval from the National Company Law Tribunal (NCLT) for the merger. This move was first announced in October 2023.
Furthermore, Slice acquired a 5 percent stake in the Guwahati-headquartered bank for approximately USD 3.42 million in March last year.
According to a press release from Slice, the merger combines the operations, assets, and brands of both companies, thereby building an unified, tech-driven banking institution.
With a seamless integration process that ensures uninterrupted service for existing customers, this new entity will provide a varied range of banking products which include savings accounts, fixed deposits, and credit services.
NESFB’s established presence in the Northeast will remain a central focus as the new entity aims to drive financial inclusion and promote economic growth in the given region.
Satish Kumar Kalra, MD & CEO of NESFB, has also described the merger as a landmark development and highlighted its transformative potential for banking in India, particularly if we look at the Northeast frontier.
Slice has also raised Rs 300 crore which is about 35 million through convertible debentures. This fund raising was co-led by the Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust. Furthermore, Rajan Bajaj, Founder of the company, also invested USD 8.6 million this month.
It is important to note that Slice has managed significant growth during FY23 despite facing disruptions from the RBI’s regulatory changes for card issuers. With this growth trajectory at hand, this Bengaluru-based company has recorded a threefold increase in revenue to reach INR 843 crore in FY23. However, losses also grew by 59.8 percent to INR 406 crore. However, we are yet to see Slice file its annual financial results for FY24.
