Last Updated on 22/11/2021 by Sanskriti
At an unknown value, fintech company Slice has secured $20 million in equity investment from current backers Gunosy and Blume Ventures. Customers may pay their credit card bills in a variety of ways and earn reward points on purchases using the credit card service.
According to creator and CEO Rajan Bajaj, Slice will use the funds to broaden its products and grow its workforce.
“The banking industry in India has always viewed credit cards as a loan product rather than a high-frequency payment instrument,” said Bajaj. “Therefore, banks’ focus is to optimize the fees related to credit cards and there are portfolio teams to increase the loan book. This leaves customer experience in the corner. However, we see it as a paid product, and we are solving it as a consumer experience problem with a ‘customer-first approach in mind.”
He said, “Any small friction in product experience can lead to a magnitude of reduction in market size, which is what is happening in India today – we believe 400 million-plus Indians are eligible for a credit card, but we just have 30 million unique customers in the country.”
In India, the present pain points in credit card usage are limiting the market opportunity.
Since its inception in 2019, the new financing brings the startup’s total equity funding to $30 million.
The company is among a growing group of credit card-based utility payments companies, the Bengaluru-based that have gained popularity as the consumer sector has become more digitized as a result of the epidemic.
“Slice’s biggest advantage is how well they understand millennials and Gen Z. The Slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether and we are glad to be a part of their growth story,” chairman, and CEO of Gunosy Inc, Shinji Kimura said.