Fintech unicorn Slice completes merger with North East small finance bank

On October 27, 2024, fintech unicorn slice completed its merger with North East Small Finance Bank (NESFB).

The merger, which was originally announced in October 2023, received clearance from the National Company Law Tribunal (NCLT) after fulfilling all required shareholder and regulatory approvals.

The transaction unites Slice, known for its digital financial services, with NESFB’s banking operations, marking a new chapter for both entities.

Unified operations and expanded service offerings

Following the merger, the combined entity will integrate both companies' operations, assets, and brand identities into a single, technology-driven banking institution.

This transformation will enable the merged entity to offer an extended range of financial products, including savings accounts, fixed deposits, and credit services.

Slice stated that the integration would be seamless for existing NESFB customers, with no service interruptions during the transition.

Strategic focus on Northeast India

A key priority for the merged entity will be NESFB’s established presence in Northeast India, a region where financial inclusion initiatives are in high demand.

Rajan Bajaj, founder and CEO of Slice, emphasized the importance of “strengthening our roots in the Northeast” and expressed the company’s commitment to increasing access to formal banking in this underserved region.

The company’s aim is to foster economic growth by reaching out to more people through formal banking channels.

Strengthened financial position and risk management

The combined institution expects to benefit from a fortified financial position, which will support broader operations and improved risk management.

By leveraging both companies' strengths, the merged entity aims to enhance customer experience and implement more robust governance measures.

With the resources and infrastructure of NESFB and the technological innovations of Slice, the new entity plans to set high standards in digital banking.

Funding and financial growth amid challenges

Ahead of the merger, Slice secured Rs 300 crore (about $35 million) through convertible debentures led by several family trusts, along with an additional personal investment of $8.6 million from founder Rajan Bajaj.

The company reported significant growth in FY23, tripling its revenue to Rs 843 crore despite regulatory challenges from the Reserve Bank of India (RBI).