How slice Fixed A Broken Bank
Many saw slice’s 2023 acquisition of North East Small Finance Bank (NESFB) as a gamble that was destined to fail. The SFB was knee-deep in bad loans and had negative returns on assets. But the fintech only saw one thing – the golden ticket to operate a bank. Today, slice has flipped the script.
slice’s Turn Of Fate: For slice, the SFB acquisition was a necessity that came at a very opportune time. A crisis struck the fintech startup in 2022, when the RBI initiated a crackdown on co-branded cards and BNPL startups, barring them from extending credit lines. The startup was looking into an abyss. But then came the NESFB deal.
Transforming Into A Bank: While rivals pivoted, founder Rajan Bajaj took a bold bet on NESFB by consolidating operations, capital, technology and personnel. Once slice SFB came to life, the primary task was to fix the balance sheet through credit discipline.
The fintech startup also introduced a proprietary underwriting stack that used behavioural data, real-time signals and digital transaction trails to improve risk management. At the same time, physical branch expansion was reined in, and digital distribution was prioritised.
The Turnaround: The efforts started paying dividends. Gross NPA almost halved to 6.25% in FY25, while operating income more than tripled YoY to ₹403.27 Cr. It also reported a profit of ₹27.97 Cr in the first nine months of FY26.
However, the turnaround has not been easy. Expenses have been rising in tandem with the top line, while the high cost-to-income ratio seems to be sticking out like a sore thumb. Then, there is the higher scrutiny and governance expectations that come with a banking licence.
Overall, while the first phase was about survival, the next phase is all about maturing into a robust financial institution. While that is a tale for another day, here’s how slice fixed a broken bank.
From The Editor’s Desk
🛢️ LPG Crunch Looms Over Food Delivery
- The closure of the Strait of Hormuz is raising fresh concerns over the country’s energy security. With shipments disrupted, supply constraints are expected to permeate across sectors, particularly in the commercial LPG segment.
- The impact is likely to hit businesses reliant on commercial cylinders, such as hotels and restaurants. The ripple effects are also expected to hit food delivery platforms such as Swiggy and Zomato (Eternal), which may see a dip in order volumes.
- The disruption fears are also spilling over to the stock market, dragging down shares of food delivery and QSR operators during yesterday’s trading session.
💰 Captain Fresh Nets ₹290 Cr Debt
- The IPO-bound B2B seafood startup has raised a ₹290 Cr debt from Swiss investment firm Blue Earth Capital to scale up its in-house manufacturing, expand global distribution capabilities and shore up hiring.
- On the IPO front, the company withdrew its DRHP last year over delays in getting clearances for an acquisition in Europe. The startup finally completed the acquisition of Spanish tuna company Frime earlier this month. This has cleared all decks for its IPO.
- Founded in 2020, Captain Fresh runs a B2B ecommerce platform that connects fishermen with seafood retailers. As of FY25, the company claimed to serve 1,300 customers across 30+ countries. It has raised $220 Mn to date.
💸 HomeRun Eyes ₹100 Cr
- The construction-focused quick-commerce startup is in talks to raise about $11 Mn in a round likely led by Nexus Venture Partners. The fresh capital will likely be utilised to set up new dark stores and expand operations to Hyderabad and Pune.
- The potential fundraise, which will also see participation from existing backers, will peg the company between ₹450 Cr and ₹500 Cr.
- Founded in 2024, HomeRun claims to deliver construction and renovation materials within 60 to 90 minutes. The startup’s SKUs include cement, tiles, paints, waterproofing products, wires, and plywood, among others. Last month, it also raised a $6.6 Mn round.
📈 SEDEMAC Backers Clock Big Gains
- Early backers of the deeptech company, which is set to list on the exchanges today, have raked in hefty returns via the IPO. Infosys cofounder Nandan Nilakeni’s family office made over 14X gains by selling shares worth ₹141 Cr.
- Another early investor and VC firm A91 Partners raked in ₹325 Cr via the IPO, translating to 3.6X gain. Xponentia Capital Partners and Mace Group made 3.6X gains each.
- This comes days after SEDEMAC’s public issue closed with a 2.68X oversubscription. The company’s IPO comprised solely of an OFS component of 80.43 Lakh shares. At the upper end of its price band, SEDEMAC is seeking a valuation of ₹5,970 Cr.
🚀 Skye Air Mobility Eyes $9 Mn
- The drone delivery startup is raising capital as part of its ongoing Series B round led by IAN Alpha Fund to expand its offerings to other cities and build its tech stack centred on physical AI.
- The capital will be raised across two tranches. Of the total, about $4 Mn will come in later this month, while the remaining amount will be raised over the next three to four months.
- Founded in 2019, Skye Air is a drone tech company, which offers last-mile B2B deliveries via drones. It also manufactures its drones in partnership with an India-based supplier. The company currently claims to have a fleet of 33 drones.
Inc42 Markets
Inc42 Startup Spotlight
How Krvvy Is Making Innerwear Functional
Functional innerwear often forces women to choose between comfort and affordability. While premium labels charge a premium, mass brands compromise on comfort. Krvvy wants to change this with its inclusive, performance-driven innerwear line.
Designed For Indians: Founded in 2023, Krvvy offers a wide range of underwear, shapewear and bodysuits engineered for everyday wear. The startup’s edge lies in its moisture-wicking and anti-odour fabrics that cater to daily use. With sizes spanning XS to 7X, the brand claims to bring inclusivity to a segment long dominated by restrictive size charts.
Bridging The Market Gap: Positioned between mass-market affordability and high-end design, Krvvy claims to focus not just on aesthetics, but also fit, comfort and practicality. It claims to have already served more than 75,000 customers through its website and online marketplaces.
Backed by Titan Capital, All In Capital, and Namita Thapar, the D2C brand aims to become the leading choice in India’s functional innerwear market, projected to exceed $220 Mn by 2032.
Infographic Of The Day
OpenAI and Anthropic are racing to define the future of generative AI as funding, users, and enterprise adoption surge worldwide.
Source link
