Fintech unicorn-turned-small finance bank Slice is set to raise around $100 million in fresh funding at a valuation between $450 million and $465 million, sources told inc42.com. This marks a sharp decline from the startup’s last valuation of approximately $1.25 billion. The round is expected to include investors such as Neo Group, Kado Global, and existing backer Moore Strategic Ventures.
The funding round follows Slice’s strategic shift from a lendingtech model to a digital bank after its merger with North East Small Finance Bank (NESFB) in October 2024. The deal could include a secondary component, though the split between primary and secondary capital remains unclear. The startup originally gained unicorn status in 2021 after raising $220 million in a Series B round led by Tiger Global and Insight Partners.
Slice’s valuation drop reflects the challenges and regulatory changes faced in 2022 that disrupted its original credit and prepaid-card business. The merger with NESFB granted Slice a small finance bank license, enabling it to expand its offerings to deposits, lending, UPI-linked credit, and payments. This transition positions Slice differently in the fintech sector compared to its earlier model, with the new valuation roughly one-third of its previous peak.
The fresh capital infusion aims to support Slice’s growth as a digital bank. The company completed its merger with NESFB in October 2024, marking a key milestone in its transformation. The next funding round details and the final valuation will be closely watched by investors and market participants.