Consumer lending and payments startup Slice has raised Rs 65 crore (approximately $8 million) in debt funding from Neo Markets. This marks the second debt investment for the Bengaluru-based company this year, bringing its total debt funding in this round to nearly $30 million.
According to regulatory filings accessed from the Registrar of Companies (ROC), Slice’s board passed a special resolution to issue 650 non-convertible debentures (NCDs) at an issue price of Rs 10,00,000 each, amounting to Rs 65 crore. The debt investment comes with a coupon rate of 15% and a tenure of 21 months.
Sources indicate this is the second tranche of Slice’s $30 million debt round. The company previously raised Rs 170 crore (about $20.5 million) from the same investors in June.
Founded by Rajan Bajaj, Slice provides physical and virtual cards tailored for millennials, enabling students and salaried professionals to purchase products and services online on estimated monthly instalments (EMIs) through an app, thereby helping them build credit scores.
To date, Slice has raised $340 million and was valued at over $1.5 billion during its Series C round in November 2021. Gunosy Capital is the largest stakeholder with a 14.84% stake, while co-founder Rajan Bajaj holds an 8.21% stake.
In a strategic move to expand financial accessibility, Slice announced a merger with North East Small Finance Bank (NESFB) in October 2023. Initially, Slice acquired a 5% stake in the Guwahati-headquartered bank for around $3.42 million in March 2022.
Backed by Blume Ventures, Slice has shown significant growth, reaching Rs 843 crore in revenue for the fiscal year ending March 2023. However, its losses also grew by 59.8% to Rs 406 crore during the same period. The company has yet to file its annual results for FY24.
