Fintech unicorn Slice has achieved a significant milestone in FY23, with its revenues soaring to Rs 846.7 crore, a 200% increase from the previous fiscal year.
The growth comes on the back of a substantial rise in both interest income from loans, which reached Rs 471.81 crore, and fees and commissions, amounting to Rs 374.93 crore.
Rise in expenses and losses
Despite the impressive revenue growth, Slice's financial year was not without challenges. The startup's losses widened by 60% to Rs 405.78 crore in FY23, up from Rs 253.67 crore in FY22.
The increase in losses is paralleled by a surge in expenses, which more than doubled from Rs 542.49 crore in FY22 to Rs 1,272.56 crore in FY23, driven by a near-tripling of employee benefit costs and a 159% hike in finance costs.
Merger with North East Small Finance Bank
In a strategic move, Slice received RBI approval to merge with North East Small Finance Bank The merger is complemented by the appointment of Satish Kumar Kalra as the interim MD and CEO, woh is tasked with spearheading the merger process and optimizing bank operations.
In November 2021, Slice turned unicorn after raising $220 million in a funding round at a valuation of over $1 billion.
Focusing on digital banking
Slice is redefining its business model, transitioning from a prepaid card issuer to a digital-first bank with a focus on retail customer credit. The startup is also actively upgrading its prepaid account holders to full-service bank accounts.
Despite the growth in revenue, Slice's financial performance shows a complex picture. The company's operating revenue grew over 12X from FY21 to FY23, but this was accompanied by a significant increase in losses and expenses. Its expense-to-revenue ratio improved in FY23, indicating a more efficient operation despite the challenges.
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