Fintech platform Slice’s revenue, losses surge

Fintech platform Slice’s revenue, losses surge

Bengaluru-based fintech platform Slice’s revenue grew threefold to Rs 847 crore during FY23 from Rs 283 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies (RoC) show. However, its losses grew by over 50% to Rs 406 crore in FY23, up from Rs 254 crore it had incurred in FY22.

The platform, which provides physical and virtual credit cards focused on students and salaried professionals, makes most of its revenue from interest income received on portfolio loans.

The company more than doubled its expenses to Rs 1,273 crore in FY23, as compared to the previous fiscal. It’s employee benefits cost surged by almost three times to Rs 287 crore in FY23 from Rs 99 crore in FY22. This component also includes a Rs 40 crore ESOP cost. It’s finance cost or interest expenses also more than doubled to Rs 169 crore in FY23, up from Rs 65 crore in FY22.

The company also recorded non-performing assets worth Rs 256 crore under the loss on financial assets, loans and advances during FY23. This figure stood at Rs 58 crore in FY22. The firm’s ROCE and EBITDA margin stood at -22% and -25% respectively in FY23. On a unit level, it spent Rs 1.50 to earn every rupee in FY23.

The startup has raised $340 million so far, with its biggest round being a $220 million Series B led by Tiger Global and Insight partners. According to data intelligence platform TheKredible, Tiger Global and Insight Partners hold 7.9% and 6.6% stakes respectively, while its founder and CEO Rajan Bajaj holds a 9.3% stake.

In October 2023, Slice and North East Small Finance Bank (NESFB) announced their merger in a move to expand their financial accessibility. The move came after the fintech acquired a 5% stake in the Guwahati-headquartered bank for about $3.42 million in March last year.