Slice, a fintech startup and creator of the ‘super card’, today announced that it has raised $20mn to challenge the credit card industry in India. It has raised this amount from existing investors Gunosy, Blume Ventures among others. In addition to this, Slice has also launched two game-changing features: Slice rewards - members can get up to 2 percent rewards on every card transaction which are instantly redeemable to cash; Slice in 3: members can slice their card bills over 3 months for free, which means they can get up to 90 days interest free period - the longest in the industry, the startup claimed.
Rajan Bajaj, Founder & CEO, Slice, said, “The banking industry in India has always viewed credit cards as a loan product rather than a high frequency payment instrument. Therefore, banks’ main focus is to optimize the fees related to credit cards and there are portfolio teams to increase the loan book. This leaves the customer experience in the corner. However, we see it as a payment product, and we are solving it as a consumer experience problem with a ‘customer first approach’ in mind. Any small friction in product experience can lead to a magnitude of reduction in market size, which is what is happening in India today - we believe 400 million plus Indians are eligible for a credit card but we just have 30 million unique customers in the country. It has directly resulted in our customer acquisition cost being 10 times lower than banks, which becomes a great competitive advantage. We are therefore able to pass on the benefits to our users via these game-changing offerings,” he said.
Shinji Kimura, Chairman & CEO, Gunosy Inc, said, “The slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether.”