Fintech unicorn slice and Guwahati-based North East Small Finance Bank (NESFB) have announced a merger between the two entities in the only instance of a fintech startup merging with a SFB.

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The Reserve Bank of India (RBI) has approved the deal and will see slice becoming an SFB, a first of its kind development in the fintech and banking space.

In a statement, the fintech said it is awaiting shareholder consent and other regulatory approvals.

Having received a nod from the central bank, the merger will help realise their shared goal of integrating cutting-edge technology offerings with grassroots financial inclusion efforts.

This merger brings together slice’s digital prowess and NESFB’s grassroots banking foundation. The combined entity supercharges its commitment to financial accessibility and will bring an unparalleled digital banking experience to its customers.

This merger is also emblematic of RBI’s unwavering commitment to fostering innovation and promoting digital financial inclusion.

Commenting on the merger, Rajan Bajaj, Founder & CEO, slice, said, “We’re grateful to the RBI for entrusting us with this immense responsibility. At slice, our unyielding devotion to customers and robust risk management have set us apart. This approach allows us to serve a wider audience, including those often overlooked, while also building a deep emotional connection with our customers. We will further strengthen our risk underwriting through the use of technology and data, and always keep customers at the heart of our decisions. We see this as an opportunity to build a highly inclusive and responsible bank, offering an unparalleled experience, underpinned by robust risk management and strong governance.”

Rupali Kalita, MD and CEO at NESFB, added, "This alliance with slice marks an exciting expansion of our reach and enhancement of our services. Dedicated to supporting the underserved, our collaboration is bolstered by slice’s innovative technology and a keen emphasis on customer experience. Meanwhile, we will continue to fortify the bank governance, with continuous improvements in compliance, risk management, and leadership. Together, we strive to deliver accessible and exceptional services, fostering inclusive and responsible banking for all.”

NESFB will continue its dedicated service to North East India, merging technology with deep community understanding to offer top-tier financial services to the region. This synergy of technology and empathy will not only bolster their enduring promise to the North East but also facilitate the extension of financial inclusion across the nation.

Customers of both entities will have a broader range of products, omnichannel offerings, and a seamless experience in the future. In the upcoming months, there will be an integration process with both entities working diligently to ensure a smooth transition for all customers.

This merger is a significant step forward in enhancing financial inclusivity using cutting-edge tech solutions, driving innovation, and setting new benchmarks in the industry.

Backed by leading investors such as Tiger Global, Insight Partners, Advent International, Blume Ventures, and Gunosy Capital, slice has cumulatively raised $290 million in its series A, B, and C rounds.

First Published:Oct 4, 2023 3:01 PM IST