Slice Raises $100 Million as It Builds Its Next Chapter as a Digital Bank

Slice has reportedly raised about $100 million in fresh funding, marking its first major institutional round after becoming a small finance bank. The round values the company at around $450 million to $470 million, which is much lower than its earlier unicorn valuation, but the business itself has changed a lot since then.

The funding has come from investors including Neo Wealth, Japan-based Kado Global, Moore Strategic Ventures, Raise Financial Services and existing backer Blume Ventures, according to reports. For Slice, this round is less about chasing a flashy valuation and more about building a stronger banking business.

What Slice does

Slice started as a fintech company focused on credit products for young users. It became popular for credit-card-like products and a smooth app-based experience.

But after regulatory changes in India’s fintech lending space, Slice had to rethink its model. The company later merged with North East Small Finance Bank, giving it a rare path into India’s regulated banking sector.

Today, Slice is no longer just a credit-focused fintech app. It is building Slice Small Finance Bank, with products across savings accounts, deposits, digital lending, payments, MSME lending and merchant finance.

Founder and founding year

Slice was founded in 2016 by Rajan Bajaj. It was earlier known as SlicePay and mainly served students and young professionals with credit access.

The company announced its merger with North East Small Finance Bank in October 2023. The merger was completed on October 27, 2024, and the lender was later renamed Slice Small Finance Bank in 2025.

Purpose of the $100 million funding

The fresh funding is expected to support Slice’s banking expansion.

For a bank, capital is very important. It helps the institution grow its loan book, meet regulatory requirements, protect against risk and support customer deposits. Unlike a normal startup, a bank cannot grow only through app downloads or marketing. It needs a strong balance sheet.

Slice may use the funding to expand its digital banking products, improve physical and digital reach, grow lending to consumers and small businesses, and strengthen compliance and risk systems.

A simple example helps here. If Slice wants to give more loans to small merchants, it needs capital, proper underwriting, customer data, collection systems and regulatory buffers. This funding can support that larger engine.

Why the valuation reset matters

Slice was once valued at over $1 billion when it was seen mainly as a fast-growing fintech startup. Now, investors are looking at it more like a small finance bank.

That changes the valuation method. Banks are often judged on book value, capital strength, loan quality, profitability and risk controls. So, a lower valuation does not automatically mean the company has failed. It shows the market is valuing Slice through a different lens.

Reports also say Slice Small Finance Bank posted a net profit of Rs. 48.4 crore in FY26, compared with a loss in the previous year. That turnaround will be important as it tries to build investor confidence.

Competitors

Slice now competes with small finance banks, digital banking platforms and fintech lenders. Its competitors include AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, Jupiter, Fi, Paytm, KreditBee and other lending and payments platforms.

Its challenge will be trust. Banking is not only about a beautiful app. Customers also care about safety, service, interest rates, loan fairness and long-term reliability.

Conclusion – Key takeaways

Slice’s $100 million funding round is an important moment in its fintech-to-bank journey.

The startup’s aim is to build a digital-first small finance bank for modern Indian consumers and businesses. The funding can help it grow lending, deposits, payments, MSME products and banking infrastructure.

For Slice, the next test is clear: prove that it can combine fintech speed with banking discipline.