Fintech startup Slice announced that it has raised $15.5 million from Japan-based Gunosy Capital, an existing investor in the startup.
The Bengaluru-based startup had passed a special resolution to issue 1,12,50,000 Series A6 CCD of Rs 100 each to raise Rs 112.5 crore or $15.5 million in compulsory convertible debt, regulatory filings reveal.
Gunosy had led a $6 million round in Slice in June 2020 along with EMVC, Kunal Shah, Better Capital, and Das Capital. Slice had also raised $5.4 million in debt from various investors in November.
Following this investment, Gunosy will become one of the largest stakeholders in Slice, with a 17.18% stake on a fully converted and diluted basis.
The startup provides a physical and a virtual card for the youth that allows students and salaried professionals to purchase collateral-free products and services online on EMI through an app and helps them in developing credit scores.
The company said it was issuing co-branded Slice cards at an annual run-rate of more than four lakh new users as of March 2020 and has a presence across 18 cities in India including Bengaluru, Mumbai, Chennai, and Delhi.
The company registered a four-fold jump in its revenue from operations to Rs 29.88 crore in FY20 from Rs 7.41 crore in FY19 and it had managed to reduce its losses by over 81% to Rs 1.87 crore in FY20 and registered positive cash flows from operations during the period.
Slice works with its subsidiary Quadrillion Finance Private limited, an NBFC which finances the credit lines the company offers through its cards.
Blume Ventures, Traxcn Labs, and China’s Finup are the early backers of Slice and it competes with several companies who have been working on the ‘buy now, pay later’ or BNPL concept.
Some well-known players in this segment include Zest Money, KreditBee, and Lazypay with PoS major Pine Labs also gearing up to join. Lending marketplace Capital Float has also shifted its core focus to the BNPL vertical.
BNPL has been drawing significant interest from investors as millennials in the country are actively using the feature for purchasing products and services.
KreditBee had raised a $145 million Series C round in March while Zest Money is in discussions to raise $80-100 million from new and existing investors.
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