Fintech startup Slice, formerly known as SlicePay, has secured $6 million in a pre-Series B funding led by existing backer Gunosy Capital. Kunal Shah, Better Capital, and existing investor Das Capital also participated in the latest round.
The fresh capital for the Bengaluru-based company came almost nine months after it had raked in Rs 20.5 crore in debt from Gunosy and Pegasus Wings Group.
While a TechCrunch report said that Slice has raised funding of $6 million today, the company’s regulatory filings reflected that $3 million capital already has been infused by Gunosy.
Gunosy poured in the fresh capital in exchange for 1 equity share for Rs 45379 per share and 22,49,946 compulsorily convertible debentures (CCDs) for Rs 100 each, as per the regulatory filings.
The proceeds will be deployed towards expanding its reach, doubling the management team, and exploring banking partnerships to launch co-branded prepaid and credit cards.
Slice is looking to reach 5 lakh young customers in the next year, added the report.
The five-year-old startup enables college students to buy collateral-free products and services online on EMI through an app. It offers RuPay-powered physical cards to purchase and pay later – similar to credit cards – to help its users in building credit scores which in turn supports them in fetching better credit cards and loans for multiple purposes from various companies.
In the last two years, Slice has been rapidly growing and claims to have issued physical and digital cards to over 4 lakh new users annually. It counts Flipkart, Amazon, BookMyShow, Myntra, Uber Eats, and Paytm among its major partners.
Slice competes with a slew of new-age loan providers Creditmate, KrazyBee, Redcarpetup, and several others.