Bengaluru based Garagepreneurs Internet, which operates a payments startup for youngsters called Slice, announced on Wednesday that it has raised Rs 39 crore (about $5.2 million in current exchange rates) in debt funding.
Multiple financial institutions such as Vivriti Capital, Northern Arc Capital, InCred, Growth Source, Ashv and others participated in the round, according to a statement.
Founded in 2016 by Rajan Bajaj and Deepak Malhotra, the company was previously called SlicePay. It offers payments and credit solutions, which are alternatives to traditional credit cards, for individuals between the ages of 18 and 29 years. Slice currently has a presence in 18 cities including Bengaluru, Mumbai, Chennai and Delhi.
The company said it will use the fresh capital to grow its book and onboard new customers onto its platform.
“We want to be the first card for millions of millennials and gen z in India and deliver a truly VIP customer experience to them,” Bajaj, CEO of Slice, said.
Slice works by giving collateral-free credit of upto Rs 60,000 through Slice cards, which can be paid via monthly instalments. The card can be utilized on e-commerce platforms such as BookMyShow, Amazon, PayTm, Myntra and Flipkart.
The company claims that, since inception, it has processed transaction volumes worth Rs 1,100 crore to more than 2.6 lakh youngsters in the country, and currently has over 5 lakh customers in the waiting list.
In June this year, Slice secured Rs 46 crore in a bridge funding round, which it dubbed as a pre-series B, led by Tokyo-based investor Gunosy Capital.
The startup raised debt funding in September 2019, when Pegasys Wings group, jointly owned by Gunosy Capital and Das Capital, pumped in $2.9 million into the organisation.
The company secured a non-banking finance company licence from RBI in January 2019.