October 27, 2024, the fintech unicorn slice finalized its merger with the North East Small Finance Bank (NESFB).
The merger, initially announced in October 2023, received clearance from National Company Law Tribunal (NCLT) after fulfilling all requirements required by shareholders and regulations approvals.
The transaction unites Slice, known for its digital financial services, with NESFB’s banking operations, marking a new chapter for both entities.
Unified operations and expanded service offerings
Following the merger, the combined entity will integrate the operations, assets and brand identities of both companies into a single technology-driven banking institution.
This transformation will enable the merged entity to offer a wider range of financial products, including savings accounts, term deposits and credit services.
Slice said the integration would be seamless for existing NESFB customers, with no service disruption during the transition.
Strategic focus on northeast India
One of the key priorities of the merged entity will be NESFB’s established presence in North East India, a region where financial inclusion initiatives are in high demand.
Rajan Bajaj, founder and CEO of Slice, highlighted the importance of “strengthening our roots in the Northeast” and expressed the company’s commitment to increasing access to formal banking services in this underserved region.
The company’s goal is to drive economic growth by reaching more people through formal banking channels.
Strengthening the financial situation and risk management
The combined institution hopes to benefit from a strengthened financial position, which will support broader operations and better risk management.
By leveraging the strengths of both companies, the combined entity aims to improve customer experience and implement stronger governance measures.
With the resources and infrastructure of NESFB and the technological innovations of Slice, the new entity plans to set high standards in digital banking.
Funding and financial growth despite challenges
Before the merger, Slice secured Rs 300 crore (around $35 million) through convertible debentures led by several family trusts, as well as an additional personal investment of $8.6 million from founder Rajan Bajaj.
The company registered significant growth in FY23, tripling its turnover to Rs 843 crore despite regulatory challenges from the Reserve Bank of India (RBI).