Fintech Unicorn Slice and North East Small Finance Bank Merger Approved by NCLT

Manvendra HadaAugust 20, 2024

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Three points you will get to know in this article:

Guwahati bench of the NCLT approved the merger plan between Slice and North East Small Finance Bank.
Merger was approved in March of this year by the Competition Commission of India (CCI).
In coming months, the companies will announce the effective merger date and details of the merged entity.

NCLT Guwahati Bench Gives A Nod To Fintech Startup Slice For It’s Merger With NE Small Finance Bank

The fintech unicorn slice and North East Small Finance Bank (NESFB) merger has received approval from the National Company Law Tribunal (NCLT), following months of approval from the Competition Commission of India (CCI).

The scheme of arrangement and amalgamation involving the fintech unicorn’s subsidiary Intergalactory Foundry Pvt Ltd, Garagepreneurs Internet Pvt Ltd (GIPL), GIPL’s NBFC Quadrillion Finance Pvt Ltd, RGVN (North East) Microfinance Limited, and NESFB was approved by the Tribunal’s Guwahati bench on August 19 (Monday), according to a statement from Slice.

“This merger is not only a significant achievement, but also evidence of our mutual commitment to revolutionizing banking practices and increasing accessibility for all. We are thrilled to combine with NESFB, and together, we will continue to innovate and strengthen financial access, technology driven banking systems, and customer service.” The founder and CEO of Slice, Rajan Bajaj, stated in the release

As a result, the companies plan to reveal in the upcoming months the combined entity’s details as well as the date of the official merger.

Recent Developments At Slice Regarding The Merger with North East Small Finance Bank

According to the announcement, consumers of the merged company may anticipate a wider selection of goods, improved omni-channel capabilities, and a smoother banking experience.

Slice had paid $3.4 million to purchase a 5% share in NESFB in March 2023.

The businesses have obtained clearances from the CCI, the Registrar of Companies (RoC), the Regional Director (RD), and the Reserve Bank of India (RBI) as well as no objection certificates from the Income Tax Department since the proposed merger was announced in October 2023.

The most recent event occurred one month after Slice acquired $20 million in debt from the Credit Opportunities Fund of Neo Asset Management.

How Does Slice’s Financials Look?

At the moment, Slice’s app provides prepaid payment banking, consumer credit, and UPI payments.

Initially established as a buy now pay later (BNPL) platform in 2016, Slice (formerly known as Slicepay) was founded by Bajaj and provided a prepaid payment instrument (PPI) that resembled a credit card. However, following the RBI’s prohibition on NBFCs issuing credit on PPI, it was forced to alter its business strategy.

Slicing’s parent company reported a 60% increase in its consolidated net loss to INR 405.8 Cr in FY23, up from INR 253.7 Cr in FY22.