Slice, a Bangalore-based financial technology startup, announced today that the company has raised $20 million in the latest funding round in an effort to transform the credit card market of India.
According to the company’s announcement, Gunosy, Blume Ventures, and other existing investors of Slice participated in the recent investment round. The fintech platform also highlighted significant growth opportunities in the Indian credit card market.
Asia’s third-largest economy currently has around 30 million credit card users, compared to more than 500 million bank account holders. Slice is planning to increase the number of credit card users in India.
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In an interview with TechCrunch, Rajan Bajaj, Founder and Chief Executive of Slice, said: “Banks treat credit cards as a loan product instead of a high-frequency payment instrument and make money through late charges and interest rates. You see a random charge on your credit card statement, you don’t recognize it so now you have to deal with a customer representative. More than half of such users give up and just accept those charges. We are upfront about all of this. There’s no such thing as a joining fee or annual fee for Slice members, and there’s no minimum amount they are required to pay each month.”
Bajaj said that the company now has more than 3 million users. Additionally, Slice is bringing new rewards to its app.
Commenting about the latest surge in the adoption of the Slice app, Bajaj said that the company has seen consistent growth since the start of 2021. May remained the best-ever month for Slice, while the company saw a growth of 25% in June.
“The Slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether, and we, at Gunosy, are glad to be a part of their growth story,” Shinji Kimura, Chairman and Chief Executive of Gunosy, mentioned in a statement.