Slice has acquired a 5% stake in Indian bank North East Small Finance. This is an important step in the journey of unicorn fintech startups, analysts say, amid mounting challenges from central banks that have overthrown many young firms.
The Bengaluru-based start-up invested $3.42 million in September in a 5% stake in a Guwahati-based microfinance bank, regulatory filings show.
The investment was funded by the Reserve Bank of India Cut off the wings of many fintech startups It operates in the card and lending category by mandating strict compliance with strict new guidelines.
It’s unclear how a bank investment, admittedly a rarity for startups and ostensibly an important milestone, will be profitable for Slice any time soon. $1.55 billion startup Backers include Tiger Global, Insight Partners, Blume Ventures and Axis Bank.
The company did not respond to a request for comment.
The world’s second most populous country is at an interesting time as banks and fintech start-ups look for ways to improve engagement. Federal Bank and SBM Bank India have acquired a number of startups as customers over the last few years in an attempt to strengthen their business.
Slow-growing banks such as HDFC and ICICI are also expanding talks with younger banks. HDFC, India’s largest private bank, recently backed Mintoak, a SaaS platform that provides merchant services in India and other markets.
SBM Bank’s India arm began engaging with investors late last year to raise capital, pitching its vision of becoming India’s top banking-as-a-service provider, TechCrunch previously reported. Accel and Quona backed Shivalik Small Finance Bank last year.
But South Asian markets have seen a surge in predatory China-related lending apps in recent years, prompting the central bank to introduce rules that will have far-reaching implications for many businesses, including those not involved in the wrongdoing. are forced to Business practices of faith.
Established in 2016, North East Small Finance Bank is a subsidiary of RGVN (NE) Microfinance, serving clients in the northeast region of the country. Backed by Pi Ventures, SIDBI Venture Capital and Bajaj Group.
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