The credit card challenger was founded in 2016 by Rajan bajaj, he is an IIT graduate and he also founded mesh internet in 2015, the thing that differentiates Slice is unlike other credit card providers their target consumers are teenagers and students who most probably doesn’t have regular income which is something very important other credit card providers look for in their potential customers, Slice doesn’t charge any annual fee, the bill can be sliced into three EMI’s with no extra interest and slice gives its users 2% cashback on what they spent wait ! But that’s how other credit card providers earn money then how slice earns money ? Well , initially the company focused on increasing its userbase rather than making revenue hoping to capitalise it in future, in FY20 and FY21 company generated a revenue of 30cr and 35.3cr respectively the company raised around $350M till June 2022 from tiger global, insight partners, moore strategic ventures and others it was last valued at $1.5B
So, did everything go right for slice? No, in June 2022 RBI released a notification in which it mentioned that PPI’s issued by NBFC’s can no longer offer credit line and for any banking or non banking entity RBI’s approval is mandatory for the issuance of PPI’s. This changed everything for the company but they came back by providing term loans by checking the credit worthiness of the user every time they seek loan by something they call as purchase power, now every time we use slice card we are actually taking a regular loan from slice and only the amount we took will reflect in cibil report unlike earlier where the whole loan account will reflect even if we don’t use it , and more importantly the company is charging around 5% as flat feet when you take loan and the user should pay it within time otherwise they may have to pay 20% interest on total if they convert it to 12 month EMI
Slice also introduced slice mini which is a prepaid account to which you can add money and spend them through slice card and it also supports UPI payments now
