Slice Small Finance Financial institution has raised about $100 million (round Rs 950 crore) from traders in a funding spherical that values the enterprise at roughly $450-$470 million, based on media reviews.

The spherical consists of funding from Indian wealth management platform Neo Wealth, Japan-based Kado World and US-based Moore Strategic Ventures, an present Slice investor.

Based on a Moneycontrol report, Neo Wealth led the spherical and accounted for round $40 million of the funding, pooling capital from high-net-worth and ultra-high-net-worth shoppers.

The $100 million additionally consists of secondary transactions, wherein present shareholders promote a few of their stakes, that means not the entire cash raised will go on to Slice. The cut up between contemporary capital and secondary share gross sales has not been disclosed.

Sharp valuation reset

The transaction represents a considerable discount from the valuation Slice commanded through the peak of India’s fintech funding growth.

The report stated that the corporate was beforehand valued at about $1.4 billion, making the most recent $450 million valuation a decline of roughly 68%. 

Slice entered the unicorn membership in November 2021 after elevating $220 million from traders together with Tiger World, Perception Companions and Creation Worldwide.

The brand new funding subsequently comes at a significantly decrease valuation, but in addition after a serious change in Slice’s enterprise.

From fintech to financial institution

Slice was initially constructed as a fintech firm centered closely on credit score and funds.

In October 2023, it obtained regulatory approval for a proposed merger with North East Small Finance Financial institution. On the time, Slice already held a minority stake within the lender. The merger was completed with impact from 27 October 2024, after receiving regulatory approvals, making a mixed banking entity.

The enterprise now operates as Slice Small Finance Financial institution and affords merchandise together with financial savings accounts, fastened deposits, credit score merchandise and UPI-linked cost providers.

The transition offers Slice capabilities that it didn’t have as a standalone fintech, together with the power to function instantly as a regulated financial institution moderately than relying solely on banking companions for monetary merchandise.

Based on media reviews, the most recent deal is its first main institutional fundraising spherical because the banking transition.

The change in enterprise mannequin additionally complicates comparisons between Slice’s present valuation and the degrees it reached as a pure fintech.

Its valuation stays considerably under its fintech-era peak, however traders are actually backing a enterprise with a banking licence, a broader vary of monetary merchandise and, most just lately, constructive earnings.