Slice has acquired a 5% stake in Indian bank North East Small Finance. This is a major step in the unicorn fintech startup’s journey, analysts say, amid mounting challenges from central banks that have overthrown many startups.
The Bengaluru-based start-up invested $3.42 million in September to acquire a 5% stake in a small Guwahati-based financial bank, according to regulatory filings. invested dollars. The investment comes at a time when the Reserve Bank of India has clipped the wings of many fintech startups operating in the cards and lending space by requiring strict compliance with strict new guidelines.
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It’s unclear how the bank’s stake in the bank, Slice, a $1.55 billion startup that includes Tiger Global, Insight Partners, Blume Ventures and Axis Bank, will immediately benefit its backers. The company did not respond to a request for comment.
The world’s second most populous country is going through an interesting time, with banks and fintech start-ups looking for ways to increase their exposure. Federal Bank and SBM Bank India have hired a number of startups as clients in recent years to streamline their business.
Slower and larger banks such as HDFC and ICICI are also expanding their consideration to younger companies. HDFC, India’s largest private bank, recently approved Mintoak, a SaaS platform to provide merchant services in India and other markets.
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SBM Bank’s India arm began raising capital late last year by working with investors to lay out a vision of becoming the country’s leading banking-as-a-service provider. Accel and Quona supported Shivalik Small Finance Bank last year.
However, with the recent surge of predatory China-related lending apps in South Asian markets, the central bank has had far-reaching consequences for many companies, including those not involved in malicious business practices.
have been forced to introduce rules that give Established in 2016, North East Small Finance Bank is a subsidiary of RGVN (NE) Microfinance and serves clients in the northeast region of the country. His backers include Pi Ventures, SIDBI Venture Capital and Bajaj Group.
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