India's Slice Merges with North East Small Finance Bank After RBI Approval
Slice, a fintech unicorn valued at approximately $1.5 billion, completed a merger with North East Small Finance Bank after receiving approval from the Reserve Bank of India. Slice had previously acquired a 10% stake in the bank, valued at around $68 million, before pursuing the full merger. According to founder Rajan Bajaj, the two organizations spent 12 months aligning their vision before finalizing the transaction.
The combined entity plans to expand its product offerings, accelerate product development, and extend banking services to underserved consumers among India's 600 million smartphone users. At least two investors committed approximately $125 million to the merged entity following the announcement. Industry observers described the deal as a significant milestone in India's fintech evolution, representing a digital-first banking revolution at a grassroots level.
The merger was characterized as an extremely rare achievement that had eluded many tech giants and financial startups for decades.
- Sets a precedent for fintech-bank mergers in India, potentially opening a new path for fintechs to obtain banking licenses
- Demonstrates that embedded finance and BaaS models can evolve into full banking entities in emerging markets
- Could accelerate financial inclusion for hundreds of millions of underserved Indian consumers through digital-first banking