Slice
Slice is an Indian small finance bank giving young, credit-thin users cards and loans.
On the record
Checkpoint: Outcome of the $50 to 100 million funding round at a valuation cut
The call
Slice has the bank license big rivals lack, but thin margins, rising bad loans, and an unresolved raise mean it is racing to prove that license into a real business before bigger banks move in.
Slice runs a digital banking service in India that offers credit products through a UPI interface, similar to a credit card but digital-first. It has a government license that protects it from other startups copying its business, but this license does not stop large banks like HDFC, SBI, or Kotak from building the same product themselves, and those banks are slower today but have more resources. The company is losing money on thin profits (3.4% margins) and has bad loans piling up (4.2% of customers not paying back), so its survival depends on raising fresh cash at a lower value than before, which signals investor doubt. Artificial intelligence for approving loans and spotting fraud is now standard everywhere, so Slice's old technology advantage has evaporated. The single thing that matters most: whether Slice can raise $50 to $100 million in the coming months to stay alive, because if it cannot, the whole company is at risk.
Why
01
AI pressure: AI-based underwriting and fraud tools now used across Indian banking. AI credit and fraud tools are becoming standard kit for every bank, so they erase any tech edge Slice once had. Could AI do the core job? Unlikely.
02
Bigger players: HDFC Bank, SBI, Kotak, ICICI. These banks can copy Slice's UPI-linked credit card and outspend it on marketing and branches once they move. Could a giant copy it? Probably.
03
What protects it. Its RBI small finance bank license and merged core banking stack, hard for fintech rivals or AI labs to get.
What would change this call
Whether Slice closes its $50-100M raise within 2026 or it stalls like the 2025 attempt. Shows if investors still trust Slice's down-round digital bank pitch.
HDFC, SBI, or Kotak launching a competing UPI-linked credit card in the next 12-24 months. Would show incumbents replicating Slice's core UX advantage at scale.
Slice's net NPA ratio reported in future Pillar III disclosures rising above 5% or falling below 3%. Indicates whether credit quality is deteriorating or recovering.
HDFC, SBI, or Kotak launching a competing UPI-linked credit card in the next 12-24 months. Would show incumbents replicating Slice's core UX advantage at scale.
Slice's net NPA ratio reported in future Pillar III disclosures rising above 5% or falling below 3%. Indicates whether credit quality is deteriorating or recovering.
Key numbers
- FY26 net profit Rs 48.4 crore vs Rs 216.7 crore loss in FY25
- Net NPA at 4.2 percent, above the 3 percent target
- Raising $50 to 100M at under $1B, down from $1.3B
Named risks
- Fresh $50-100M fundraise unresolved as of May 2026 at a valuation cut below $1B.
- Net NPA at 4.2% (Sept 2025) amid sector-wide SFB NPA growth to ₹10,449 crore by March 2026.
- Large incumbent banks structurally able, though currently slow, to replicate UPI-linked card UX.
- Prior fundraise attempt of $250-300M in 2025 failed to materialize.
- AI-driven KYC fraud and deepfake identity attacks pressuring digital lenders' verification systems.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| HDFC Bank, SBI, Kotak, ICICI | contesting | Large banks not barred from copying UPI-linked credit card UX Slice launched June 2025 |
| OneCard | losing to | OneCard valued ~$1.4B (company-claimed, Nov 2024) versus Slice's sub-$1B target valuation, April 2026 |
| KreditBee | losing to | KreditBee hit unicorn status at $1.5B via $280M round, reported April 7, 2026 |
| Jupiter | contesting | Jupiter holds ~15% of neo-banking active users and won NBFC license in 2025 (company-claimed) |
| Fibe (EarlySalary) | gaining on | Fibe filed IPO papers and invests heavily in AI underwriting, reported July 21, 2026 |
Questions people ask
- Is Slice profitable in 2026?
- Yes for the first time. Slice Small Finance Bank posted a net profit of ₹48.4 crore in FY26 (year ended March 31, 2026), swinging from a ₹216.7 crore loss in FY25, driven by a stronger loan book and lower provisioning, per Economic Times reporting May 26, 2026.
- Is Slice raising money right now?
- As of April 8, 2026, Slice was in active talks to raise $50-100 million at a valuation expected under $1 billion, down from its prior ~$1.3 billion mark. A 2025 attempt to raise $250-300 million did not close, and the current round remained unresolved as of late May 2026.
- Who is Slice's biggest competitor?
- Slice competes most directly with OneCard (~$1.4 billion valuation, Nov 2024), CRED, KreditBee (unicorn at $1.5 billion after a $280 million round, April 2026), and Jupiter (~15% of India's neo-banking active users, mid-2025), plus large banks like SBI and Kotak that can copy its UPI-linked card UX.
- Could AI replace Slice's lending business?
- AI is automating underwriting, KYC, and fraud detection across Indian lending, e.g. RBI's MuleHunter.AI (May 2026) and rival Fibe's AI underwriting push (July 2026), eroding Slice's tech edge, but Slice's RBI small finance bank license, obtained via its October 2024 NESFB merger, cannot be replicated by an AI model or fintech peer.
- Who owns Slice and is it a real bank now?
- Slice is privately held and venture-backed by Tiger Global, Insight Partners, Advent International, Blume Ventures, and Gunosy Capital. It became a regulated bank on October 27, 2024 after merging with North East Small Finance Bank, later renamed Slice Small Finance Bank in 2025.
- What is Slice's credit quality like?
- Slice Small Finance Bank's net NPA ratio stood at 4.2% in H1FY26 (September 30, 2025), down from 4.7% in FY25 and 8.4% pre-merger, per CARE Ratings, May 26, 2026, indicating gradual improvement but still elevated risk versus large private banks.
Timeline
- 2026-05-26Slice SFB reports first-ever FY26 net profit of ₹48.4 crore, versus ₹216.7 crore FY25 loss
- 2026-05-13CARE Ratings withdraws NCD rating on Slice SFB at company's request
- 2026-04-08Slice in talks to raise $50-100M at valuation under $1B, down from ~$1.3B
- 2026-03-31Slice opens UPI-linked credit card to all users after 1.2M waitlist
- 2026-02-16RBI approves Rajan Bajaj as MD and CEO of Slice Small Finance Bank
- 2026-02-16Acuité Ratings assigns Slice SFB BBB+ Stable on proposed Tier II bonds
- 2025-06-28Slice launches India's first UPI-linked credit card and UPI-powered bank branch
- 2025-05-31Entity formally renamed Slice Small Finance Bank
- 2024-10-27Slice completes merger with North East Small Finance Bank, first fintech-bank merger in India
- 2021-11-30Slice reaches unicorn status via $220M Series B led by Tiger Global and Insight Partners
Revision history
22 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- slice and North East Small Finance Bank Announce Successful Completion of the Merger (2024-10-29)
- Pillar III Disclosure (2026-03-31)
- RBI Approves Rajan Bajaj As MD And CEO (2026-02-16)
- Slice hits unicorn status with $220m Series B funding round (2021-11-30)
- Slice in talks to raise $50-100 million (2026-04-08)
- Slice Small Finance Bank (2026-05-26)
- Slice swings to profit in first full year after North East SFB merger (2026-05-26)
- slice super card press release (2025-06-28)
- slice rolls out UPI-linked credit card to all users (2026-03-31)
- CARE Ratings Press Release (2026-05-26)
- What is Competitive Landscape of OneCard Company? (2025-07-26)
- Co-branded cards squeeze; Slice's valuation reset (2026-04-07)