slice Eyes $100 Mn Funding At 60% Valuation Cut As Bank Valuation Takes Shape

Fintech unicorn turned small finance bank (SFB) slice is set to raise around $100 Mn in fresh funding at a valuation of $450 Mn-$465 Mn, marking a sharp decline from the startup’s last valuation of around $1.25 Bn, sources told Inc42.

The round is expected to be backed by Peak XV-backed wealth management platform Neo Group, Japan-based Kado Global and existing investor Moore Strategic Ventures, according to people familiar with the development. The round could also include a secondary component, with the exact split between primary and secondary capital yet to be discerned.

Moneycontrol reported the development first.

The investment deal could potentially value the startup at roughly one-third of its last known valuation of $1.25 Bn. The startup entered the unicorn club in 2021 when it raised $220 Mn in its Series B round led by Tiger Global and Insight Partners. 

However, the valuation dip comes amid slice’s bid to establish itself as a digital bank following its merger with North East Small Finance Bank (NESFB). The transaction gave the Bengaluru-based startup a small finance bank licence and marked a fundamental shift from its earlier lendingtech model.

From Fintech To SFB

slice’s original business was built around credit and prepaid-card products, but regulatory changes in 2022 disrupted that model. It subsequently acquired NESFB and completed the merger in October 2024.

Since then, slice has expanded its offerings across deposits, lending, UPI-linked credit and payments, while building out MSME and merchant lending businesses.

The transition also changes the metrics investors use to assess the company. Rather than being valued primarily as a consumer fintech business, slice is now positioning itself as an SFB. This means that banking-related metrics — deposits, lending growth, profitability and cost of funds — have gained importance.

An investor note by 8i Ventures founding partner Vikram Chachra, reviewed by Inc42, compared slice’s valuation with other banks on a price-to-book basis. The note puts slice at around 4.5X book value.

The valuation reset comes despite improving financial performance.

slice Swings To The Black

The SFB swung to the black in Q1 FY27, reporting a net profit of ₹50.9 Cr in the June quarter against a net loss of ₹10.1 Cr in the year-ago quarter. Its profit for the quarter under review also surpassed the ₹48.4 Cr PAT it reported for the entire FY26.

slice’s total income rose 38.6% to ₹413.8 Cr during the quarter from ₹298.6 Cr in Q1 FY26. r.  

Meanwhile, its gross loan book grew about 55% to ₹5,098 Cr from ₹3,284 Cr a year earlier. Its deposits nearly doubled to ₹5,765 Cr from ₹3,038 Cr during the same period, slice said in a statement. Current account savings account (CASA) ratio stood at 43.9%, with CASA and retail term deposits together accounting for 94.7% of its total deposits. 

The bank’s total assets increased 54% YoY to ₹7,444 Cr, while its net worth rose 16.5% to ₹896 Cr. Its outstanding debt declined 23.2% to ₹507.3 Cr from ₹660.4 Cr a year earlier. 

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