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

Fintech unicorn slice is preparing to raise $100 million in fresh funding at a valuation ranging from $450 million to $465 million, a significant 60% decrease from its previous $1.25 billion valuation, according to sources. The new funding round is anticipated to be led by Neo Group, a wealth management platform backed by Peak XV, along with Japan-based Kado Global and current investor Moore Strategic Ventures.

The secondary component of the financing deal remains to be determined. Moneycontrol was the first to report this development. This investment is expected to place the startup at around one-third of its previous valuation of $1.25 billion. Slice achieved unicorn status in 2021 after securing $220 million in its Series B round led by Tiger Global and Insight Partners.

However, the valuation drop comes as slice endeavors to establish itself as a digital bank following its merger with North East Small Finance Bank (NESFB) in October 2024. This merger transformed slice from a fintech company focused on credit and prepaid card products to a small finance bank (SFB), shifting its focus to banking-related metrics such as deposits, lending growth, profitability, and cost of funds.

Slice's financial performance shows improvement, with the SFB reporting a net profit of ₹50.9 crore in the first quarter of fiscal year 2027, up from a net loss of ₹10.1 crore in the same quarter a year earlier. Its total income has also increased by 38.6% to ₹413.8 crore during the quarter.