Slice, the Bengaluru-based payments and credit startup, has secured a $20 million war chest to compete with major players in India's credit card industry. Existing investors Gunosy and Blume Ventures, among others, participated in the fundraising.
Commenting on its latest investment, Shinji Kimura, Chairman and CEO, Gunosy Inc, said, "Slice's biggest advantage is how well they understand Millennials and Gen Z. Their approach to solving their issues has been truly refreshing and building something simple and hassle-free has been a part of their DNA since inception."
"The Slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether, and we, at Gunosy, are glad to be a part of their growth story," Kimura added.
Slice also updated its platform with two capabilities: Slice rewards and Slice in 3.
The first feature will allow a member to earn up to a 2 per cent reward on every card transaction, which is redeemable to cash.
The second capability allows members to Slice their card Bill's over three months for free. This implies that members can get up to 90 days of an interest-free period. It is important to note that this is the longest in the industry.
Commenting on the new developments, Rajan Bajaj, Founder and CEO, Slice, said, "The banking industry in India has always viewed credit cards as a loan product rather than a high-frequency payment instrument. Therefore, banks' main focus is to optimise the fees related to credit cards, and there are portfolio teams to increase the loan book. This leaves the customer experience in the corner. However, we see it as a payments product, and we are solving it as a consumer experience problem with a customer-first approach in mind."
"It has directly resulted in our customer acquisition cost being ten times lower than banks, which becomes a great competitive advantage. We are, therefore, able to pass on the benefits to our users via these game-changing offerings," he added.
Slice launched its card in 2019 and claimed to have over three million registered users, growing consistently at 25 per cent month-on-month.
The Slice super card — which comes with no hidden charges, joining fees, or annual fees — is accepted at 99.95 per cent of merchants across India that accepts Visa. With these new developments, slice aims to take on the credit card industry, the startup claims.
India in focus
GDP: $2.869 Trillion compared to China's $14.28 Trillion in 2019
Population: 1.366 Billion compared to China's 1.398 Billion in 2019
GDP per capita: $1,900 compared to China's $10,500 in 2019