Fintech unicorn Slice has received a significant nod from the National Company Law Tribunal (NCLT) for its merger with North East Small Finance Bank (NESFB). The approval marks a key milestone for the companies, who announced their strategic merger in October 2023.
This merger comes on the heels of Slice’s acquisition of a 5% stake in NESFB in March 2023 for approximately $3.42 million. The union aims to harness the strengths of both entities—leveraging Slice’s cutting-edge technology and NESFB’s deep regional insights—to promote broader financial inclusion across India.
According to a press release from Slice, the merger will result in an expanded suite of products, improved omnichannel capabilities, and a streamlined banking experience for customers. The combined entity is set to offer enhanced services and greater accessibility.
The NCLT’s approval includes the sanctioning of the scheme of arrangement and amalgamation involving several entities: Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and NESFB. This comprehensive approval process also saw endorsements from the Competition Commission of India (CCI), the Registrar of Companies (RoC), the Reserve Bank of India (RBI), and the Income Tax Department.
In financial performance, Slice has reported a remarkable threefold increase in revenue, reaching Rs 843 crore in FY23. Despite this growth, the company experienced a 59.8% rise in losses, which totalled Rs 406 crore for the same fiscal year. This performance occurred amidst regulatory changes imposed by the RBI on card issuers. The Bengaluru-based fintech is yet to release its financial results for FY24.
