Indian fintech unicorn Slice has acquired as much as a 5% stake in North East Small Finance Financial institution, reported the Financial Occasions, citing a number of sources.
Slice paid below INR300m ($3.6m) for the minority stake within the Assam-based financial institution, the sources instructed the publication.
The fintech may make additional investments within the financial institution, however these discussions are but to be finalised.
As per the foundations, Reserve Financial institution of India (RBI) permission shouldn’t be mandatory for investments as much as 5% in banks.
Slice will want the central financial institution’s approval for any extra share purchases.
The fintech, which has been contemplating a attainable funding in a financial institution for a couple of quarters, bought a share in North East Small Finance Financial institution in September of final 12 months, however the transaction was not beforehand disclosed, the report mentioned.
“There’s extra at play between Slice and North East Small Finance Financial institution which is why it’s been below the wraps to this point,” a supply conscious of the discussions mentioned.
With the assistance of the funding and relationship with the financial institution, Slice is exploring varied integrations and specialised provides for its customers, the sources added.
Notably, Slice has been working its non-banking monetary enterprise (NBFC) for greater than 4 years.
After working the NBFC enterprise for 5 years, the fintech will likely be certified to use for a brand new licence and change into a financial institution.
“It might make issues simpler for them (Slice) to work intently with the financial institution and open many doorways for partnerships. Basically, it is sensible to have extra stake within the financial institution and personal the stack for its companies. They’ve been very delicate about it since it might contain the regulator’s clearance,” one of many sources defined.
In November 2021, Slice grew to become a unicorn after elevating $220m in a Sequence B funding spherical, co-led by Tiger International and Perception Companions.