Investors are showing full trust in Indian fintech firms to automate financial activities. In a recent development, Slice has raised $20 million in a new funding round. The startup is known for developing a “super card” for millennials in India.
Slice Raises $20 Million
Slice, the fintech startup, is making the credit card system easy to use for customers. To strengthen its operations further, it has collected $20 million from existing investors Gunosy, Blume Ventures, and others. The Bangalore-based startup will utilize these funds in adding more features that will make credit card and customer interaction easier.
In South Asia, the credit card market is not grown much due to the complicated process to apply for credit cards. Around 30 million users have credit card access in India, while the bank account holders’ database is huge.
Slice has made life easy for users who want a credit card. The platform not only issues the care to part-time jobholders, but it has also removed the unnecessary steps while applying for it.
The startup has attracted over 3 million users to its app and is now introducing the rewards system. Talking about the latest development, Rajan Bajaj, founder, and chief executive of Slice, said in an interview with TechCrunch:
“You use your card more often than you use Uber, Ola, Swiggy, and Zomato combined. But the payment experience on the card leaves a lot to be desired. Eventually, if customers don’t see a value, they will abandon the card and move elsewhere.”
How Slice Became Popular?
Talking about the complaints and issues raised by credit cardholders earlier, Bajaj aid:
“Banks treat credit cards as a loan product instead of a high-frequency payment instrument and make money through late charges and interest rates. You see a random charge on your credit card statement, you don’t recognize it so now you have to deal with a customer representative. More than half such users give up and just accept those charges.”
And, that is the reason why Slice became popular. It resolved all these technical issues and encouraged the users to carry credit cards.
Talking about the Slice operations for easy use of credit card, he said:
“We are upfront about all of this. There’s no such thing as a joining fee or annual fee for Slice members and there’s no minimum amount they are required to pay each month.”
He further added:
“As we were building our platform, we recognized that there were many things that a credit card firm engages in that didn’t make sense for the customers, so we didn’t include those.”
Further, the Slice app provides 2% cash back on every credit card transaction. It also offers exclusive deals for its customers.