Fintech unicorn turned small finance bank slice is set to raise around $100 million in fresh funding at a valuation of $450 million to $465 million. The figure represents a sharp decline from the startup's last valuation of around $1.25 billion. The round is expected to be backed by Peak XV-backed wealth management platform Neo Group, Japan-based Kado Global, and existing investor Moore Strategic Ventures, according to sources familiar with the development.
Funding round and valuation details
The investment could value the Bengaluru-based company at roughly one-third of its last known valuation of $1.25 billion. slice entered the unicorn club in 2021 after raising $220 million in a Series B round led by Tiger Global and Insight Partners. The new round may also include a secondary component, although the exact split between primary and secondary capital remains unclear.
Moneycontrol first reported the development. The decline in valuation comes as slice works to establish itself as a digital bank following its merger with North East Small Finance Bank. The transaction gave the startup a small finance bank licence and marked a fundamental shift from its earlier lending technology model.
From fintech lending to small finance bank
slice originally built its business around credit and prepaid card products before regulatory changes in 2022 disrupted that model. The company subsequently acquired North East Small Finance Bank and completed the merger in October 2024. Since then, slice has expanded into deposits, lending, UPI-linked credit, payments, and merchant and MSME lending.
The transition also changes how investors assess the company. Instead of being valued primarily as a consumer fintech business, slice is now positioning itself as a small finance bank. Banking-related metrics such as deposits, lending growth, profitability, and cost of funds have therefore become central to its valuation framework.
Improving financial performance
slice swung to a net profit of Rs 50.9 crore in the June quarter of FY27, compared with a net loss of Rs 10.1 crore in the same quarter last year. This quarterly profit also surpassed the Rs 48.4 crore profit after tax the bank reported for the entire FY26. Total income rose 38.6 percent to Rs 413.8 crore from Rs 298.6 crore in the year-ago period.
The gross loan book grew about 55 percent to Rs 5,098 crore from Rs 3,284 crore a year earlier. Deposits nearly doubled to Rs 5,765 crore from Rs 3,038 crore during the same period, according to a statement from slice. The current account savings account ratio stood at 43.9 percent, and CASA plus retail term deposits accounted for 94.7 percent of total deposits.
Total assets increased 54 percent year-on-year to Rs 7,444 crore, while net worth rose 16.5 percent to Rs 896 crore. Outstanding debt declined 23.2 percent to Rs 507.3 crore from Rs 660.4 crore a year earlier. An investor note by 8i Ventures founding partner Vikram Chachra compared slice with other banks on a price-to-book basis and placed slice at around 4.5 times book value.
The new funding round highlights a significant valuation reset for slice even as its financial performance improves under the small finance bank model. Backers appear willing to support the company's transformation despite the lower valuation. The focus now shifts to whether slice can sustain deposit growth, lending expansion, and profitability in the competitive banking landscape.
Source: Moneycontrol