Slice and North East Small Finance Bank have Completed Their Merger

Nitin Konde, Varun Bhardwaj

Oct 29, 2024 — 2 min read

Slice and North East Small Finance Bank have Completed Their Merger

With all necessary shareholder and regulatory permissions, the fintech firm Slice, based in Bengaluru, has successfully merged with North East Small Finance Bank (NESFB) as of October 27. Slice stated in a letter released on 28th October 2024 that the merger will combine the two companies' activities, assets, and brand identities into a single banking organisation.

In addition to growing operations, strengthening risk management frameworks, and increasing customer experience, the business said in a statement that the combination will contribute to the development of a technology-driven bank.

Merger Aims at Expanding Footprints in the North East Region

The newly formed organisation will concentrate on regional economic development and expand its footprint in the country's northeast region.

To make this merger a reality, the teams at Slice and NESFB have been working nonstop for more than a year. The chief executive officer of Slice, Rajan Bajaj, expressed gratitude to the regulatory bodies, particularly the RBI and the Government of Assam, for entrusting the company with this revolutionary journey. He noted that the merger is particularly dedicated to fortifying its ties in the Northeast and working to increase the number of persons enrolled in the official banking system.

In October 2023, Slice was given the go-ahead by the Reserve Bank of India to combine with the struggling NESFB. The Competition Commission of India and the National Company Law Tribunal also gave their consent later.

How Merger Will Help Both the Entities?

Slice noted that the merger will make it possible for the amalgamated business to make use of cutting-edge technology and profound community awareness, which will ultimately lead to increased financial inclusion across the country. Customers may anticipate an increased selection of products, improved omnichannel offers, and a banking experience that is more streamlined.

The scheme of arrangement and amalgamation that involves Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and North East Small Finance Bank Limited has been approved by the National Company Law Tribunal (NCLT).

Slice’s Financial Report Card

The most recent valuation of Slice was above $1.5 billion, which occurred at the Series C round in November 2021. To date, Slice has raised a total of $340 million. According to the data intelligence platform TheKredible, Rajan Bajaj, who held the position of CEO and co-founder of the company, owned 8.21% of the ownership.

While Slice's losses increased by 59.8% to a total of INR 406 crore, the company's revenue increased by a factor of three, reaching INR 843 crore in the fiscal year 2023. The Bengaluru-based company was able to scale during the fiscal year 23, despite the disruption it experienced as a result of the Reserve Bank of India's change in rules for card issuers. It has not yet submitted its annual financial reports for the fiscal year 2024.