In a significant move for the consumer lending and payments startup Slice, founder and CEO Rajan Bajaj has invested approximately $8.6 million (Rs 71.7 crore) through partly paid-up shares. This investment comes on the heels of a recent Rs 300 crore debt funding round, showcasing Bajaj’s commitment to the company’s growth trajectory.
Details of the Investment
The investment by Bajaj is part of a broader strategy to bolster Slice’s financial standing and support its ongoing operations. According to a special resolution passed by the company’s board, 22,000 equity shares will be issued at an issue price of Rs 32,606 each. This move was documented in a regulatory filing with the Registrar of Companies.
- The investment will be executed in one or more tranches, aimed at general business purposes.
- This funding is expected to enhance Slice’s capabilities in providing innovative financial solutions to its target demographic.
Slice has carved a niche for itself by offering both physical and virtual cards tailored for millennials. The platform allows students and salaried professionals to make purchases online with collateral-free EMIs, while also assisting users in building their credit scores.
Recent Funding Landscape
This latest investment follows a substantial Rs 300 crore debt funding round raised through convertible debentures, co-led by notable entities such as Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust.
- Slice has now raised nearly $400 million in total funding, including a notable $220 million Series B round led by Tiger Global and Insight Partners.
- According to TheKredible, Tiger Global remains the largest stakeholder in the company, with Insight Partners closely following.
The financial backing from Bajaj and other investors reflects a growing trend among startup founders to reinvest in their ventures. In 2024 alone, several prominent founders have made significant contributions to their companies, signaling confidence in their business models and future prospects.
Growth and Financial Performance
While the financial results for FY24 are yet to be disclosed, Slice has demonstrated impressive growth in the previous fiscal year. The company reported a threefold increase in revenue, climbing to Rs 847 crore in FY23, up from Rs 283 crore in FY22. However, this growth has come at a cost, as losses also surged by 59.8%, reaching Rs 406 crore in FY23 compared to Rs 254 crore in FY22.
- The increase in losses highlights the challenges that come with rapid expansion, as Slice continues to invest in scaling its operations and enhancing its product offerings.
- The company’s focus on millennials and young professionals positions it well in a competitive market, as more consumers seek flexible payment solutions.
As Slice continues to navigate the evolving landscape of consumer finance, the recent investment from Rajan Bajaj underscores a strong belief in the company’s vision and potential for future success.
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