Slice, a modern credit card startup that offers flexibility in bill payment, cost management, and reward point distribution, said that it has raised $220 million in new funding, driven by US-based investors Tiger Global and Insight Partners.
The Bengaluru-based business is now worth over $1 billion thanks to this cash, a five-fold increase from its prior financing round six months prior. The investment round that produced the newest unicorn now has 37 participants this year, with Advent International’s Sunley House Capital, Moore Strategic Ventures, and Anfa among its new backers.
Gunosy, Blume Ventures, and 8i, who are already investors, also took part in the latest investment round.
According to Slice creator Rajan Bajaj, other angel investors in the round included checkout.com founder Guillaume Pousaz and Binny Bansal, co-founder of Flipkart.
Individuals informed on the situation claimed that Slice has also had a small secondary share sale in this round and may top off the current round with an additional $20 to $30 million. Rajan remained silent on the subject. He claims that the company’s card issuing to new customers has increased by a factor of ten, from 20,000 per month at the beginning of the year to approximately 200,000 per month.
In order to provide cards to professionals, it has teamed up with Visa. According to Bajaj, this will result in growth because the new capital will be used for growth, innovation, and improving consumer engagement. It has grown by 40% month over month and anticipates maintaining this trend over the coming year.
Slice users have access to a variety of online and physical purchases that can be repaid to the business using a conventional credit card. When the borrowed funds are returned after more than three months, a fee is assessed. Its own non-banking financial company handles the majority of its lending. It has about 5 million registered users in total.
“Half of our consumers are already active credit card users, while the remaining half are brand-new to credit. Depending on whether the user is new to credit or already has a credit card, the borrowing limits on Slice cards change. These cards have a minimum credit limit of about Rs 2,000.
According to those with knowledge of the situation, the company is now operating at an annualized sales run rate of about $60 million.