Slice, the Bengaluru-based digital banking startup, has raised $100 million in a fresh funding round led by Indian wealth management platform Neo Wealth, with participation from Japan-based Kado Global, US-based Moore Strategic Ventures and Dhan-parent Raise Financial, at a valuation of around $450 million, according to a Moneycontrol report.
The valuation marks a roughly 68 to 70 percent decline from Slice's earlier unicorn valuation, which stood between $1.3 billion and $1.5 billion following a $50 million Series C round led by Tiger Global. Slice first reached unicorn status with a $200 million Series B round in November 2021, a period when Indian fintech valuations were near their peak.
According to Slice's filing with the Registrar of Companies, the company's board has approved the issuance of 40,347 compulsory convertible debentures worth ₹403.47 crore (approximately $42.5 million), with the broader $100 million round comprising both primary capital and a secondary share sale by existing investors — roughly $20 million to $25 million of which was contributed by Neo Wealth, which pooled capital from high-net-worth clients.
The steep valuation reset reflects a fundamental shift in how investors are pricing Slice: rather than valuing the company on pure fintech growth metrics, as was the case during its unicorn-era rounds, investors are now benchmarking Slice against regulated lenders such as HDFC Bank and Brazilian digital bank Nubank, following the company's transformation into a licensed small finance bank through its acquisition and merger of North East Small Finance Bank. That shift has brought both greater regulatory scrutiny and, notably, a return to profitability.
Slice reported a net profit of ₹48.4 crore in FY26, a sharp turnaround from a loss of ₹217 crore in FY25, and carried that momentum into the first quarter of FY27 with a net profit of ₹50.9 crore. Total income rose 38.6 percent year-on-year to ₹413.8 crore in the June 2026 quarter, up from ₹298.6 crore a year earlier, and grew 3.5 percent sequentially from ₹399.7 crore in the March 2026 quarter — figures that helped underpin investor appetite for the round even at a fraction of Slice's earlier valuation.
Despite the lower headline valuation, the raise ranks in the 94th percentile among Indian fintech late-stage funding rounds over the past four years, according to funding data compiled by Dealroom, underscoring that even a steeply discounted Slice round remains a large transaction by the standards of India's broader fintech late-stage market. In August, Slice also strengthened its board with the appointment of Samir Sawhney as executive director — an appointment approved by the Reserve Bank of India — and Ramesh Kumar as independent director.
Slice's pivot from a youth-focused virtual credit card provider to a full-stack, RBI-regulated small finance bank represents one of the more significant business model transformations among India's well-known fintech unicorns of the 2021–2022 era, several of which have had to substantially reshape their operations, and in some cases their valuations, in the years since.
For investors, Slice's return to profitability alongside its steep valuation reset offers a case study in how India's fintech sector is increasingly separating durable, regulated business models from the growth-at-all-costs valuations that characterized the sector's earlier funding boom.
Slice has not detailed specific plans for deployment of the new capital beyond continuing to build out its digital and physical banking infrastructure, though its now-profitable operations and expanded regulatory footprint position it to compete more directly with established players such as PhonePe and Paytm in India's crowded digital financial services market.
