slice, the main challenger to credit cards, has successfully raised $ 220 million in a Series B round that values ââthe company at over $ 1 billion.
The round was led by leading investors, Tiger Global, and Insight Partners, a New York-based global private equity and venture capitalist. New and existing investors including Sunley House Capital of Advent International, Moore Strategic Ventures, Anfa, Gunosy, Blume Ventures and 8i also participated in the round.
Even though most people in India have bank accounts and debit cards, only a fraction of this banking population has access to credit cards – less than 35 million according to industry estimates. Additionally, the country’s young credit scoring system only covers a tiny fraction of this population, making it tedious for them to own a credit card.
slice takes care of credit card awareness and ease of use in India through its super card slice, a prepaid visa card with a line of credit that allows hundreds of millions of Indians to enjoy benefits similar to those on a credit card as well as increasing their credit score.
Rajan Bajaj, Founder and CEO, slice, said: âSince the inception of the company, we have had a considerably different point of view than a typical start-up. The idea was never to burn capital and acquire users forcefully, but to build a sustainable and robust business. We kept our heads down for the first few years and focused solely on simplifying the consumer journey and creating a state-of-the-art risk underwriting system.
âOur far superior product experience has made us the most popular alternative to existing credit cards. It also allowed us to serve not only the population with credit history but also the massive population of new creditors that the banks did not penetrate. Being able to combine both product experience and risk excellence, on a large scale, is what sets us apart. “
Alex Cook, Partner at Tiger Global, said: âslice has designed a product that customers love and which we hope will result in continued growth and market share gains. We’re excited to partner with Rajan and the team as they expand access to credit and deliver the best-in-class customer experience. “
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âSlice targets an under-penetrated market in India and enables users to make online payments, pay bills and more. ” noted Deven Parekh, Managing Director at Insight Partners. âThere is a great opportunity in the credit and payments space in India, and slice is well positioned to become the industry leader. We look forward to this partnership with slice as they continue to develop and grow. “
Rajan adds, âWhile we are very proud of the product we have created and the exponential growth of our business since the launch of slice super card, there is still a long way to go. We credit this achievement to the talented and resilient team who work day and night to make this possible. We are excited to partner with Tiger Global, Insight Partners and other new investors as we grow. Pay attention to us as we quietly and steadily become a household name. “