How a digital credit startup transformed into a regulated Indian small finance bank

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: In a landmark shift for Indian finance, the fintech company Slice has completed a merger with North East Small Finance Bank. This transition from a non-banking financial firm to a licensed bank marks a significant evolution in how digital-first credit services integrate with the traditional banking infrastructure of India.

The journey began in January 2016 when the company launched as SlicePay, initially focusing on credit lines and buy-now-pay-later services for students and young professionals. By January 2019, the Reserve Bank of India granted the firm a non-banking financial company license. This allowed the business to expand its reach, notably through a prepaid card partnership with Visa and SBM Bank India. The company saw rapid growth, reaching unicorn status in November 2021 after securing approximately $220 million in funding. At its peak in mid-2022, it was issuing more than 300,000 prepaid cards every month.

The regulatory landscape shifted in June 2022 when the Reserve Bank of India issued a directive prohibiting non-banking financial companies from providing credit lines on prepaid payment instruments. To maintain compliance, the company ceased its prepaid card operations. This merger represented the first time a fintech entity in India combined with a traditional bank.

Following extensive regulatory review, the merger concluded in October 2024, and the entity officially adopted the name Slice Small Finance Bank in May 2025. Financial backing has been robust throughout this transformation. By December 2024, the firm had accumulated $387 million in total funding. A subsequent capital injection in September 2026 brought in an additional $100 million from a diverse group of investors, including Moore Strategic Capital, Neo Wealth, Kado Global, and others. This latest round of investment placed the valuation of the company at approximately $450 million, solidifying its position as it operates from its headquarters in Bengaluru.

General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.

Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?

Related

• How a Bengaluru startup became the backbone of India's digital payment revolution
• From a government-backed startup to a global financial powerhouse: the story of Axis Bank.
• From a village non-profit to India's first microfinance universal bank
• How a government infrastructure lender became a retail banking powerhouse
• How a government-backed development institution evolved into a pillar of India's modern financial system
• A Slavic highland makes more than a million cars a year
• Why the United States once admitted new states in strictly paired slave-free bundles
• A pocket Adriatic state keeps Europe’s oldest wooden wheel
• How a ten-minute draft became the most decorated James Bond theme song in history
• Why the world's most vital economic engines lack a single universal definition
• How a drunken party conversation and a bankruptcy crisis shaped the highest-grossing Bond film
• The surreal comedy of a nonprofit dedicated to making people smile

More in Countries and other regions · More in Countries & Cities · Latest · A–Z · All topics