SLICE RAISES $100M IN STEEP DOWNROUND

The funding round represents a significant correction for the credit card-focused fintech, which has pivoted to operate as a small finance bank. The downround follows stalled funding discussions with Accel, signaling headwinds in India's competitive fintech sector. Slice's transition from a credit card provider to a regulated banking entity reflects shifting strategy, likely aimed at accessing broader lending capabilities and regulatory credibility. However, the valuation compression underscores investor concerns about unit economics and market saturation in India's digital lending space. The $100M capital injection provides runway for the company to expand deposit mobilization and loan book growth—core functions of its small finance bank license. Still, the steep valuation cut highlights the gap between early-stage fintech hype and sustainable profitability in the Indian market.