Millennial-focused fintech startup SlicePay scores Rs 20.5 Cr in debt

Fintech startup SlicePay, which offers instant credit to students and young professionals, has raised Rs 20.5 crore debt from Japan-based Gunosy Capital and Pegasus Wings Group.

The funding has come in the form of non-cumulative Compulsory Convertible Debentures (CCD). The company has issued 20,50,600 CCD at face value of Rs 100 each, revealed RoC filings with MCA.

While Gunosy Capital led the debt round by pouring in Rs 13.4 crore, Pegasus Wings Group infused about Rs 7 crore in the Rajan Bajaj-led company. Of late, Gunosy has been selectively picking up deals in fintech space. Its portfolio includes Faircent and Instamojo.

SlicePay is likely to utilise the funds for meeting the working capital requirements and expand its operations across India. Unlike regular debt financing, this round has a coupon rate of 0.0001% and shall convert into equity before any equity financing, liquidation event.

As per the agreement, mentioned in the filings, the maximum post-money valuation of SlicePay in the next equity financing round shall not exceed Rs 341 crore.

The fresh capital infusion has come almost a year after when it had raised about $15 million series A funding round led by FinUp Finance Technology Group.

Previously, the four-year-old startup had secured $2 million from Japan’s Das Capital and Simile Ventures from Russia in October 2017.

For the unaware, SlicePay enables college students to buy collateral-free products and services online on EMI through an app. It offers RuPay-powered physical card to purchase and pay later - similar to credit cards.

SlicePay directly competes with Redcarpet and mPokket and to some extent with ZestMoney, Kissht, and a slew of others.