Slice, a Promising Fintech Startup “Slice”, Prepares for Banking Entry Through Merger with SFB

By Ritwik Ghosh,Kolkata India


Bengaluru- grounded Slice, which also holds an NBFC licence, said it has entered a no- expostulation instrument from the Reserve Bank of India( RBI) for the sale. The junction will allow the combined reality “ to more serve their participated charge and reach further consumers who presently warrant access to introductory banking services,” Slice said in a statement.

In 2021, the RBI had allowed fintech establishment BharatPe to buy 49 in Unity Small Finance Bank, as part of a deliverance plan for Punjab and Maharashtra Cooperative( PMC) Bank.

Following the junction, Slice will cease to live as a company. “ All Slice realities, including its NBFC licence, will be intermingled with the concerted banking reality,”

Credit and payments unicorn Slice on Wednesday blazoned its junction with Guwahati- grounded North East Small Finance Bank( NESFB), in a rare case of a fintech entering the banking sector.

Slice, being a fintech company, went through a rigorous quantum of due- industriousness and all kinds of checkups over the last 15 months before publicizing this junction,” the person added. “ Slice has been also working nearly with the NESFB operation to understand banking operations more, to understand where technology can play a big part, what kind redundancies and junction will take place, in order to take better control of how the operation will run, post the sale.”

As part of the process, Slice picked 5 in North East SFB last time “ just to get comfort” and also over a period of time, it bought fresh 5 stake before this time.

With Slice having over 50 shareholders and the small finance bank having 4- 5 shareholders in total, a back- of- the- envelope computation suggests that Slice shareholders will enjoy about 95- 97 stake in the merged reality; whereas the remaining 3- 5 will be possessed by North East SFB shareholders. The total shareholders in the concerted banking reality is going to be 55- 60.

This junction, pending needful shareholders ’ concurrence and other nonsupervisory blessings, brings together Slice’s digital prowess and NESFB’s grassroots banking foundation, according to a Slice statement.

On the make- up of the board and operation after junction, choice of CEO, and if there will be a new name for the combined reality, the person said these matters are anticipated to be decided latterly as there are some nonsupervisory processes pending, including concurrence from the National Company Law Tribunal( NCLT).

the RBI wanted this junction to be blazoned because as a banking reality, there are numerous stakeholders involved, including depositors, and lenders.

NESFB has been facing severe challenges due to asset quality deterioration owing to the cataracts in Assam last time and delayed fundraising plans.

Slice, which counts Tiger Global, Insight Partners, EMVC, Blume Ventures among its backers, was valued at about$1.5 billion in a backing round last time. It employs nearly 1,300 people. It isn’t clear whether there will be any impact on the pool.

Opining on the junction, Slice author and CEO Rajan Bajaj said in its statement, “ We’ll further strengthen our threat financing through the use of technology and data, and always keep guests at the heart of our opinions. We see this as an occasion to make a largely inclusive and responsible bank, offering an unequaled experience, sustained by robust threat operation and strong governance.”

While the junction and shareholding details are yet to be known, the person quoted over said Slice as an reality is incorporating at a fair request value of ₹ 11,700 crore and NESFB at over

 ₹ 450 crore. “ A large part of the value of Slice is coming from its NBFC,” the person claimed.
“ This alliance with Slice marks an instigative expansion of our reach and improvement of our services. devoted to supporting the underserved, our collaboration is bolstered by Slice’s innovative technology and a keen emphasis on client experience, ” said Rupali Kalita, managing director and principal superintendent of NESFB, in a set statement.

“ Meanwhile, we will continue to fortify the bank governance, with nonstop advancements in compliance, threat operation, and leadership. Together, we strive to deliver accessible and exceptional services, fostering inclusive and responsible banking for all.

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