Highlights
Rebranding Initiative for North East Small Finance Bank Limited
North East Small Finance Bank Limited (NESFB) is preparing for a significant rebranding, proposing to change its name to Slice Small Finance Bank Limited (Slice SFB). This information was shared through a recent extraordinary general meeting (EGM) notice.
The name change has already received a ‘no objection’ letter from the Reserve Bank of India (RBI) dated January 16, 2025, and it awaits final approval from the Registrar of Companies. Startup Superb has obtained a copy of the EGM notice.
Merger Details
The merger was finalised in October of last year, following approval from the National Company Law Tribunal (NCLT). The agreement originated in March 2023, when Slice acquired a 5% stake in the Guwahati-based bank for approximately $3.42 million. This merger integrates the operations, assets, and brands of both institutions, resulting in a cohesive, technology-focused banking entity.
Post-merger information indicates:
- The bank’s net worth has increased to Rs 912.58 crore.
- The Capital to Risk Asset Ratio (CRAR) has risen to 23.67%.
- The Net Non-Performing Assets (NNPA) improved from 6.69% to 4.62%.
Funding and Growth Trajectory
As reported by the Economic Times, Slice is currently in discussions to secure an additional $250-300 million. In the previous year, the company generated nearly $8.6 million from its founder and CEO Rajan Bajaj through partly paid-up shares and over $36 million through a debt funding round. This funding round was co-led by Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust.
Based in Bengaluru, Slice has successfully raised nearly $400 million in investments, including a $220 million Series B round led by Tiger Global and Insight Partners. Sources indicate that Tiger Global is the predominant stakeholder, closely followed by Insight Partners.
Financial Performance
Slice experienced a significant increase in revenue, tripling to Rs 847 crore in the fiscal year 2023, compared to Rs 283 crore in the previous fiscal year. Nevertheless, this rapid growth has led to a 59.8% rise in losses, which reached Rs 406 crore during the same period. The company has yet to submit its annual report for the financial year 2024.