Slice Pay Business Model - How Slice Successfully Redefined The Conventional Rules Of Credit Card Payment

Slice is a successful FinTech startup that eased the burden on credit card users by coming up with simple and convenient methods to make payments. One of the key reasons for their surging popularity and success is the transparency and honesty they maintain with their service users. Since the beginning, Slice's primary focus has been on its user's needs and reducing their credit card worries. 

Credit cards have always been a constant source of worry for the Indian middle-class families and youngsters who have recently started working. Although credit cards have helped many people buy expensive goods and pay a fraction of the total amount monthly, the interest that adds up can burn a big hole in the user's wallet. This is where Slice comes into the picture as the hassle-free alternative to credit cards. 

Slice's Smart Business Model 

Slice's CEO Rajan Bajaj is himself an avid credit card user. The idea of Slice emerged in his mind when he saw how banks often declared the young crowd, including college students, freshers, new employees, and small-business owners, ineligible for the credit card system. Slice works to build a bridge between these youngsters and banks. E-commerce giants Amazon and Flipkart are also supported by Slice, so you can purchase and pay for your orders with no-cost EMIs. With Slice cards, you do not need to worry about falling prey to hidden costs. The Slice app is yet another cherry on the cake; it sends you regular reminders of your daily expenditure, graphs of your spending activities, and everything needed to keep you covered.

Slice's Astute Revenue Model

Slice's major portion of income comes from the collection of handling fees. The other sources of its revenue are income from interest, commissions earned from partner merchants like Myntra, Amazon, etc., late fees that are applied to credit defaulters, and other miscellaneous sources. Additionally, Slice has a subsidiary by the name of Quadrillion Finance Private Ltd., which is also a major source of revenue generation.

One of Slice's biggest strengths is transparency, so you can rest assured that every penny you pay or receive is accounted for.

Slice's Steady Financial growth 

Slice has had remarkable financial growth since its inception. As quoted by Slice's CEO, "Currently, five million merchants accept the Slice card. We are growing at a rate of 15 to 20 percent each month". The current expenses statistics of Slice stand at 34%, reaching Rs 47.8 crore in FY21. Handling fees, which form the major chunk of Slice's earnings, saw a 3.6X growth in FY20 itself. Although, in the FY21, their losses surged to 394%.

They are presently operating strongly in 16 Indian cities, and they further aim to expand in tier 2 and tier 3 Indian cities too. Thanks to their relentless efforts, they have hit the 12 million user base mark. 

In November 2021, Slice entered the Unicorn club, a privilege only startups valued at more than $1 billion are entitled to. This happened as Slice was a part of the Series B round of funding led by Tiger Global Management and Insights Partners. As of now, the age group of Slice's users is between 18-29 years old (Millenials and GenZs), and among them, the number of regular users is almost 200,000, which is only going to expand further.

Slice's Funding History

As mentioned earlier, thanks to the Series B round of funding, they have managed to raise around $291.2 million. In the latest, on June 1, 2022, the Series C round of funding has helped them raise $50 million from Tiger Global. Interestingly, Slice became the 31st Indian startup and the 11th FinTech from India to be a part of the unicorn club in 2021. The big players in the investing game from different countries have also backed up the Indian FinTech startup; some of them include Japan's Das Capital, Russia's Simile, Blume Ventures, and Tracxn Labs, to name a few.

How To Apply For A Slice Card?

Follow the steps below carefully to apply and receive your Slice card:

• Download the Slice app from Playstore, to begin with. 
• Make an account but ensure that you are well aware of the terms and conditions involved beforehand.
• Fill in the further details to synchronize your credit score with the app.
• Fill in the necessary details accurately, especially your address, as the card will be delivered exactly according to the address you mentioned. 
• Post the card's reception, set a pin that you will remember well and also won't be easy to decipher. This will activate your card, and you can start your shopping spree. 

Conclusion :

Slice has gained a stronghold of the market in the Indian financial sector. They aim to keep expanding their operations in 24 Indian cities in the coming years. Slice has recently stepped foot in the UPI payments sector of India and is ready to compete with the sector's big names like BharatPe, PhonePe, and GooglePay. They have successfully attracted their desired customer base to avail their credit card services. Slice has managed to provide an easy monthly payment option with bare minimum credit, something which was a distant dream for the youngsters and small-business owners a few years back. The company will ensure that they come up with easy solutions for the most difficult banking situations even in the remotest places of India.