Slice gets shareholders nod to raise ₹200 crore through NCDs
Premium- The startup turned into a unicorn after it raised $220 million from Tiger Global and Insight Partners in its latest funding round on late last year.
Fintech startup Slice can now raise ₹200 crore through non-convertible debentures (NCDs) after it received its shareholders’ nod, the company said in its filing. However, the timeline for the debenture issue is not known. YourStory first reported about Slice's plans to raise funds through NCDs.
The startup turned into a unicorn after it raised $220 million from Tiger Global and Insight Partners in its latest funding round on late last year.
The fundraise comes on the back of the company discontinuing its core "Pay in 3" interest-free loan service for most of its customers. Launched to provide credit to unserved customers, the "challenger card" will now charge a 36 percent interest for payments made in more than one installment, a report by moneycontrol said.
The decision to charge interest on repayment models, other than the single instalment, and move towards payments offerings signals a more conservative approach amid a tough growth environment, with a focus on a profitable business model as startups look to reduce cash-burn amid a slowdown in funding.
By restricting the “Pay-in-3" feature on the card and allowing it for in-app payments, the startup is looking to shore up transactions on the app where it has strong revenue-sharing agreements with a number of brands.
The "challenger card" came under scrutiny after the Reserve Bank of India on June 20 prohibited credit-linked prepaid payment instruments.