Slice raises $100m as India’s FinTech focus shifts to banking

By Divya Shah

Indian FinTech-turned-banking player Slice has raised $100 million in a late-stage funding round led by Neo Wealth, with participation from Kado Global and Moore Strategic Ventures, according to multiple reports.

The funding values the company at approximately $450 million, below its previous valuation of $1.4 billion, reflecting a shift in how investors are assessing the business following its transition into a regulated banking entity.

The round comprises both primary capital and secondary share sales. Neo Wealth is to have contributed around $40 million through a structure that pooled investments from high-net-worth individuals, while existing investors also offloaded a portion of their holdings.

The valuation reset comes as Slice moves away from its origins as a credit-card-focused fintech and positions itself as a full-service banking franchise. Market participants increasingly value the company against banking and financial services peers rather than high-growth fintech firms, resulting in a more conservative but potentially more sustainable valuation framework.

Slice strengthened its banking ambitions through the acquisition of North East Small Finance Bank in 2023. The deal enabled the company to expand into deposit products, digital lending and MSME banking services, broadening its revenue streams beyond consumer credit.

Since the merger, the company has reportedly seen strong growth in deposits, underlining its transformation into a regulated banking platform. The latest capital infusion is expected to support further expansion of its banking operations and customer offerings.

Despite the lower valuation, the funding round ranks among the larger late-stage investments in India’s fintech sector in recent years. The transaction highlights continued investor appetite for fintech companies that operate within regulated banking frameworks and have diversified business models.

The deal also signals a broader trend in India’s fintech ecosystem, where investors are increasingly favouring businesses with strong regulatory foundations, deposit franchises and long-term profitability prospects over standalone lending or credit-led models.