Slice raises $50 Mn in a new round led by Tiger Global

Credit card alternative major Slice has raised $50 million as a part of the Series C round led by existing backer Tiger Global and joined by Moore Strategic Ventures and Insight Partners.

Japanese investor GMO Venture Partners is a new investor to join this round, said the company in a press statement. While the company didn't disclose any further details about this round, Entrackr has decoded the round split, valuation et al through its regulatory filings.

Slice has already received $41 million or Rs 308 crore from the existing investors, filings show. Tiger and Moore have infused Rs 115.7 crore each whereas Insight has put in Rs 77 crore. According to Fintrackr’s analysis, Tiger and Moore own 7.82%  and 3.05% stake respectively. Insight commands a 6.58% stake in the Bengaluru-based unicorn.

The company has been valued at between $1.5-1.7 billion in the Series C round, as per Fintrackr’s estimates. In November 2021, Slice had turned unicorn with a $220 million Series B round co-led by Tiger and Insight.

Founded by Rajan Bajaj, Slice provides a physical and a virtual card focused on the young that enables students and salaried professionals to buy collateral-free products and services online on EMI through an app and helps them in building credit scores. The focus on early users means a higher risk, which the firm hopes to balance out by better risk practices and lower acquisition costs with a digital heavy approach. Although we would love to have more data on its IPL campaign impact to give a definite view on these.

The company claims to have 12 million registered users but hasn’t disclosed the number of actual cardholders. According to sources, it has an average revenue run rate (ARR) of $100 million and processes Rs 2,000 crore ($265 million) worth of gross transaction value (GTV) on a monthly basis. The company is yet to file consolidated annual financial statements since FY21.

Sources also emphasised that Slice is eyeing a raise of over $100 million in this round but the company’s spokesperson has refused to comment on this.

In February, Slice announced  an ESOP buyback program worth Rs 65 crore ($8.5 million). According to the company, around 60 former and existing employees, holding vested stocks in the company, were eligible for the buyback. The company competes with OneCard, Uni, LazyPay and KreditBee.