Bengaluru-based SlicePay, an AI based instant credit app for youngsters in India, has successfully raised a whopping $2 million (approx. Rs 13 crore) in a Series A round funding from Russian early-stage investor Simile Venture Partners and Japanese investment fund Das Capital with participation from existing investor Blume Ventures, according to a report in VCCircle.
Formerly called Buddy, SlicePay aims to revolutionise the way India pays by extending Indians a single line of credit in the long run. The startup started with an early adopter generation of college students as they are the most frequent shoppers and a good demographic to build this infrastructure on before it starts scaling up with millennials and then others.
According to SlicePay, another reason they decided start with college students is because they usually have limited options when it comes to credit since banks and NBFCs are not so accepting of them.
Currently operational in Bangalore, Chennai and Vellore, SlicePay plans to use the money raised to expand to more cities in the country, revealed Rajan Bajaj, co-founder and chief executive of SlicePay in a statement to VCCircle.
He further added, “This capital would allow us to serve students in other parts of India for both their education and consumption-related credit needs. We have developed a strong data-driven risk model using alternative data points. In the next phase of growth, we will be expanding to other cities and identifying the right set of customers to give access to SlicePay.”
Backed by big data, machine learning, artificial intelligence and data science, and with a relentless focus on disrupting the traditional credit ecosystem powered by legacy banks, SlicePay combines flexibility and transparency to ensure that its users can avail plans that cater specifically to their needs.
Founded in November 2015 by Bajaj, an IIT Kharagpur alumnus, and Deepak Malhotra, a BITS Pilani graduate, the startup provides a credit line of up to Rs 60,000 to students from over 500 colleges through its proprietary risk mechanism. The final loan disbursal is completed by its non-banking financial partner. Since starting up, the startup claims to have disbursed more than Rs 45 crore in loans.
Prior to the $2 million Series A round, SlicePay’s parent company Garagepreneurs Internet Pvt. Ltd had raised $500,000 from Blume Ventures and Tracxn Labs in early last year. The startup was once again in the news in February when it acquired Trustio, a peer-to-peer lending company based out of New Delhi, in an all-equity deal.
[Image: BW Disrupt]