Indian fintech unicorn Slice buys stake in a bank

Slice has acquired a 5% stake in Indian financial institution North East Small Finance, analysts say.

The Bengaluru-based startup invested $3.42 million for a 5% stake within the Guwahati-based small monetary financial institution in September.

The funding comes at a time when many fintech startups working within the playing cards and lending classes are clipping their wings by mandating strict adherence to new pointers by the Reserve Financial institution of India.

It is unclear how a stake in a financial institution thought-about a uncommon and seemingly important milestone in a startup would instantly profit Slice, a $1.55 billion startup that counts Tiger International, Perception Companions, Blume Ventures and Axis Financial institution amongst its backers.

The corporate didn’t reply to a request for remark.

The world’s second most populous nation goes by an attention-grabbing time as banks and fintech startups search for methods to enhance their interactions. Federal Financial institution and SBM Financial institution India have courted many startups as shoppers in recent times as they attempt to strengthen their companies.

Slowly rising banks, together with HDFC and ICICI, additionally expanded their talks with youthful companies. HDFC, India’s largest personal financial institution, not too long ago supported Mintoak, a SaaS platform that gives service provider providers in India and different markets.

As TechCrunch beforehand reported, SBM Financial institution’s India arm started working with buyers to lift capital late final 12 months, laying out its imaginative and prescient to develop into one of many high service-as-a-service suppliers within the nation. Accel and Quona supported Shivalik Small Finance Financial institution final 12 months.

However the rise within the proliferation of some China-linked predatory lending practices within the South Asian market in recent times has pressured the central financial institution to introduce guidelines which have far-reaching results on many companies, together with these not included in unhealthy markets. religion enterprise practices.

Based in 2016, North East Small Finance Financial institution is a subsidiary of RGVN (NE) Microfinance, serving prospects within the north east area of the nation. Its backers embody Pi Ventures, SIDBI Enterprise Capital and Bajaj Group.