Jobaaj Stories
Slice which is a Fintech Credit and Payments Startup has announced a merger with North East Small Finance Bank which is a Guwahati-based entity. Accordingly, This is the only instance where a small finance bank and fintech startup.
The Reserve Bank of India has approved the decision and we will soon see Slice becoming Slice Finance Bank, which will be a first of its kind in fintech and the banking Space.
This Startup was valued at around US$ 1.8 Billion during its latest funding round. Earlier this year, Slice acquired almost 5% stake in NESFB for a value of $3.4 million.
Currently, any details about the shareholders of merged entities are not known but as per the previous valuation and investment, it’s possible that Slice Shareholders may own a big stake in the merged new entity.
Officials from the RBI have previously stated that they are opposed to fintechs obtaining licenses through the acquisition of license-holding regulated companies like banks and NBFCs. Prior to now, the regulator had given Centrum Capital and fintech payments company BharatPe permission to invest in Unity SFB. But this is the first time a fintech company has transformed into a bank.
Also, Read, Indian Stock Market Declines Amid Auto and IT Sector Concerns
