Fintech startup slice raises $20 mn from Gunosy, Blume Ventures and others

slice, a fintech startup has raised $20 million from existing investors Gunosy, Blume Ventures among others. In addition to this, slice has also launched two new features, which, the firm said, makes the slice super card the best way for millennials and gen z to make payments.

The members can get up to 2 per cent rewards on every card transaction which are instantly redeemable in cash. Also,  members can slice their card bills over 3 months for free, which means they can get an interest-free period of up to 90 days - the longest in the industry.

Rajan Bajaj, founder and CEO, slice, said the banking industry in India has always viewed credit cards as a loan product rather than a high-frequency payment instrument. Therefore, banks’ main focus is to optimise the fees related to credit cards and there are portfolio teams to increase the loan book.

“This leaves the customer experience in the corner,” said Bajaj. “However, we see it as a payment product, and we are solving it as a consumer experience problem with a ‘customer first approach’ in mind.”

Bajaj said any small friction in product experience can lead to a significant reduction in market size, which is what is happening in India today.

“We believe (over) 400 million Indians are eligible for a credit card but we just have 30 million unique customers in the country,” said Bajaj. “This approach gives us a strong word of mouth among our customers. It has directly resulted in our customer acquisition cost being 10 times lower than banks, which becomes a great competitive advantage.”

slice has seen rapid growth since the launch of its card in 2019. The firm is now at over 3 million registered users and growing consistently at 25 per cent month-on-month. The company said the slice super card comes with no hidden charges, joining fees, or annual fees. It is also accepted at 99.95 per cent merchants across the country that accept Visa.

“slice’s biggest advantage is how well they understand millennials and gen z. Their approach to solving their issues has been truly refreshing and building something simple and hassle-free has been a part of their DNA since inception,” said Shinji Kimura, chairman and CEO, Gunosy Inc. “The slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether,” he said.