The Competition Commission of India (CCI) has given the green light for the merger between the fintech unicorn slice and North East Small Finance Bank (NESFB).
This approval clears the path for a comprehensive integration that includes slice’s parent company, Garagepreneurs Internet Private Limited (GIPL), its NBFC arm Quadrillion Finance, and subsidiary Intergalactory Foundry Private Limited (IFPL), with NESFB and its wholly-owned subsidiary RGVN (North-East) Microfinance Limited.
Strategic Expansion:
Announced in October 2023, the merger signifies Slice’s strategic initiative to expand its service offerings, bolster its underwriting capabilities, and enhance overall customer experience. The fintech firm, renowned for its innovative payment and credit solutions, intends to utilize this merger to navigate regulatory hurdles and broaden its market footprint.
Financial Dynamics:
The merger coincides with slice’s period of notable financial growth and operational adjustments. Despite experiencing a 60% year-on-year rise in net losses in FY23, slice witnessed a significant 199% surge in operating revenue.
Strengthening Leadership Team:
In anticipation of the merger, slice has been actively fortifying its leadership and operational structure. The appointment of Satish Kumar Kalra, a former executive from Andhra Bank, as the interim managing director (MD) and CEO of NESFB, along with a Rs 75 crore debt round from Stride Ventures, underscores this preparation.
With the approval from CCI secured, slice and NESFB are now poised to finalize the merger process, pending the submission of the composite scheme of amalgamation before the National Company Law Tribunal (NCLT) and the completion of associated transactions.
