The streets of Coramangal, one of the largest areas of Bangalore, are covered with billboards and banners of digital payment services. Every few steps you find a bank and offices of fintech startups.
But when Mohammed Nayyim wanted to get a credit card, he realized that his possibilities were limited. He applied for a credit card at RBL Bank, a bank headquartered in Mumbai that has existed for over 70 years. In the following days, he answered many of their questions over the telephone and provided them with a number of documents.
Calls continued, but the card never arrived.
Nyyim works as a freelance interior designer and earns an average of $ 580 a month, he told TechCrunch in an interview last year. Although for most of the country’s banks this is more than enough to give him a credit card, the fact that he does not have a traditional job was unpleasant for all of them.
Tens of millions of people, such as Nayem in India, today cannot get a credit card. They lived most of their lives on debit cards and with virtually no points. Today in India, about 1 billion debit cards are used, but only about 50 million credit cards are in circulation.
In the end, Naim came across a startup called Slicewho provided him with a Slice Card, which for all purposes and purposes serves as a credit card. For over a year now, he has been using Slice’s offer, and his experience has been “wonderful,” he told TechCrunch.
Slice offers a prepaid card that comes with a pre-approved line of credit, said Rajan Badzhaj, co-founder and CEO of a four-year-old startup, in an interview with TechCrunch. The startup, headquartered in Coramangala, is targeted at people like Naim, a young demography consisting mainly of students, freelancers, startups, and workers.
Bajaj said that more than 250,000 customers today use the Slice card. Within a month, the average user performs about 10 transactions with digital services such as Swiggy and music applications, and spends about 25,000 rupees ($ 330). As users spend more, Slice increases its monthly limit to 100,000 rupees ($ 1,320).
But providing a card to these users is only part of the value proposition. Perhaps the greatest appeal to users is that they can create credit ratings that ultimately allow them to get the right to receive better credit cards from other firms and banks, and allow them to get loans for various purposes. According to Bajaj, after about six months with Slice, most users have a credit rating of over 700.
Startup also offers users the opportunity to receive a small package of loan products, pay them at a zero interest rate and track their expenses.
On Thursday, Slice announced it had raised $ 6 million in a round of financing before B. The tour was held in Japan. Gunosy while the headquarters of EMVC in the USA, Kunal Shah from CRED, Better Capital and existing investor Das Capital, headquartered in Singapore. He also considers Blume Ventures, Traxcn Labs and China Finup among his investors.
Bajaj said Slice plans to roll out a new capital to expand its reach. He plans to reach 500,000 young customers over the next year.
Raising capital for global pandemic height “This is evidence of Slice’s technology for determining customer creditworthiness and its underwriting methodology,” he said. But Bajaj warned that he expects to see slightly more defaults in the coming months due to local conditions and new rules.
But for Slice, this figure will still remain below 5%, and the startup, which has been profitable since last year, has good opportunities to navigate it.
“We believe that the slice has a sustainable advantage because it deciphered the demands of young credit users and provided a deep understanding of credit risk and low-cost distribution using technology,” said Yuki Maniva, Gunosy’s director.