On June 28, Indian fintech startup slice informed that it has raised $20 million in a new financing round. The startup that has built a ‘super card’ for Indian millennials will be adding new features to change how people engage with their credit cards.
The amount is being raised in equity funding from existing investors Gunosy and Blume Ventures among others at a valuation which is not revealed yet. The Bengaluru-based startup offers flexibility to customers concerning payment of credit card bills and reward points on transactions.
The members can receive rewards up to 2 per cent on every card transaction which are directly redeemable in cash. In addition, they can slice their card bills for free for over three months as a result of which they can get an interest-free period of up to 90 days. It is considered the longest in the industry.
The founder and Chief Executive of the fintech startup Raj Bajaj has said to The Economic Times that slice would utilize the capital to diversify your offerings and expand its team. He told TechCrunch that it is now bringing rewards to its app since it attempts at turning the plastic card into a larger financial instrument.
He added, “Banks treat credit cards like a loan product instead of a high frequency payment instrument and make money through late charges and interest rates.” Hence, the main focus of the banks is the optimization of credit card-related fees as well as portfolio schemes to increase the loan book.
Shinji Kimura, the Chairman and Chief Executive Officer of Japan-based Gunosy Inc. has said that startup’s biggest advantage is how well they understand millennials and Gen Z.
