Slice, an Indian fintech startup that has built a ‘super map’ for millennials in India, said on Monday it had raised $ 20 million in a new round of funding and added new features to change the way people interact with their businesses. credit card.
Existing investors Gunosy, Blume Ventures and others have funded the Bangalore-based startup’s new round, he said.
Although hundreds of millions of Indians today have a bank account, only about 30 million have a credit card. Most people in the South Asian market are not eligible to get a credit card, and even many of those who are don’t bother to get one because the registration experience is too much. clumsy, time consuming and the rewards don’t make for it.
Slice has made it easier for many more people – even those without traditional full-time jobs – to get a card, and the sign-up process doesn’t take forever.
Rajan Bajaj, founder and CEO of Slice, said in an interview with TechCrunch that the startup, which has already amassed more than 3 million users, is now bringing rewards to its app as it tries to turn the card into plastic into a more important financial instrument.
“You use your card more often than you use Uber, Ola, Swiggy and Zomato combined. But the card payment experience leaves a lot to be desired. Eventually, if customers don’t see value, they will abandon the card and move elsewhere, ”he said.
“Banks treat credit cards as a loan product instead of a high frequency payment instrument and make money from late fees and interest rates. You see a random charge on your credit card statement, you don’t recognize it so you now need to deal with a customer representative. More than half of those users give up and just accept these fees, ”he said.
“We’re up front about it all. There is no membership fee or annual membership fee for Slice members and there is no minimum amount that they are required to pay each month, ”he said, adding that the startup is also profitable. “When we were building our platform, we recognized that there were a lot of things a credit card company was getting involved in that didn’t make sense to customers, so we didn’t include them.” , did he declare.
Slice’s eponymous app displays hyperlocal restaurant offers and also refunds up to 2% cashback on every transaction which is instantly redeemable for cash, he said.
One of the ideas behind the rewards, Bajaj said, is to get people to engage with the app more often so they know how much money they are spending. Customers can also use the app to make multiple purchases (for example, by scanning a QR code).
“We see the card as a payment product, and we solve it as a customer experience problem with a customer first approach in mind,” he said. Six months after joining Slice, the credit score of over 65% of members climbs to 730, he said.
To make it easier for members to pay their bills and not worry about additional charges, Slice now offers them the option to split their bill and complete payment in up to three months – the longest. sector – uninteresting.
Slice has also become a formidable rival for established credit card companies in recent years. Bajaj said about 50% of new customers joining Slice today hold a credit card from a competing company, he said. More than half of those customers switch to Slice as their primary card, he added.
“With the new features, which are very competitive, we plan to move over 80% of customers who have other cards to using Slice as their primary card within the next six to eight months,” he said, adding that the startup is able to offer better rewards than most credit cards because it only spends a fraction of its competitors on acquiring new customers.
“Our existing customers tell their friends about Slice. We don’t have to stand in malls and airports to advertise our product, ”he said.
The coronavirus pandemic has dramatically reduced the consumption habits of people and has therefore hurt several fintech startups. But the Bangalore-based startup said it has not only recovered, but is also growing. Slice said May was his best month since its inception and June saw 25% growth.
The startup, which provides a credit limit to users through its own balance sheet, said it will roll out the new funding to develop more features for customers.
“The biggest benefit of Slice is how well they understand Millennials and Gen Z. Their approach to solving their problems has been truly refreshing and building something simple and hassle-free has been part of their DNA since its inception. The Super Card Slice has the potential to fundamentally change the way the next generation views the concept of credit cards and we at Gunosy are happy to be a part of their growth story, ”said Shinji Kimura, Chief Executive Officer. de Gunosy, in a press release.