Indian fintech-turned-bank Slice Small Finance Bank has raised approximately $100 million (around ₹950 crore) in its latest funding round, marking its first major institutional fundraise since transitioning into a small finance bank.
The round was backed by Neo Wealth, Japan-based Kado Global and Moore Strategic Ventures, with Moore returning as an existing investor in the company. Reports indicate that the transaction values Slice at approximately $450 million to $470 million, representing a substantial reduction from its earlier valuation.
Moneycontrol reported a valuation of around $450 million, while The Economic Times put the range at $450–470 million. The difference reflects reporting around the final terms of the transaction.
Slice Valuation Falls Sharply
The latest funding represents a significant valuation reset for Slice. The company had previously reached a valuation of around $1.3–1.4 billion during its fintech growth phase.
At the latest valuation, Slice is worth considerably less than it was at its previous peak. The development reflects changing investor expectations around fintech businesses as the sector matures and companies increasingly need to demonstrate sustainable financial performance rather than focusing solely on rapid customer growth.
The transaction is therefore being viewed as a down round, although investors continue to see potential in Slice's transformation into a regulated banking institution.
Who Invested in Slice?
Neo Wealth led the latest round, with Kado Global and Moore Strategic Ventures also participating. Moore has previously invested in Slice and has backed other Indian technology companies, including Razorpay, Pine Labs and ShareChat.
Reports also indicate that the $100 million corpus includes both primary capital and secondary share sales, meaning the entire amount will not necessarily flow directly into Slice's balance sheet.
From Fintech Startup to Small Finance Bank
Slice's business has changed significantly since its earlier days as a credit-card-focused fintech. The company acquired North East Small Finance Bank in 2023 and subsequently became a licensed small finance bank.
Since then, Slice has expanded into deposits, digital lending, payments, MSME lending and merchant-focused financial services. Its new status means investors are increasingly assessing the company using banking metrics such as deposits, loan growth, asset quality and profitability.
The latest funding comes at an important stage of this transformation. According to The Economic Times, Slice reported a ₹50.9 crore net profit in the June quarter, compared with a ₹10.1 crore loss during the same quarter of the previous year.
What the Funding Means for Slice
The $100 million investment provides Slice with additional capital as it works to scale its banking operations. However, the lower valuation demonstrates that investors are applying a different lens to the company than during its high-growth fintech phase.
For Slice founder Rajan Bajaj, the key challenge now will be turning the company's digital-first distribution model into a sustainable banking franchise.
The latest round therefore represents both a major valuation correction and a fresh vote of confidence. Investors appear willing to back Slice's banking ambitions, but the company will need continued deposit growth, disciplined lending and stronger profitability to justify a higher valuation in the future.
