A fintech startup, Slice, has cut down its credit limit to a more affordable cost of Rs.2,000 on Visa cards to reach a more eligible customer-base.
With the view of opening up new options for customers as well as to scale up the customer-count, fintech company Slice offers its cards with a credit limit of Rs. 2,000.
Unlike the present scenario, the startup used to issue cards which held credit limits worth Rs. 10,000- Rs. 10 lakh. Rajan Bajaj, the Founder and CEO of Slice, reported Moneycontrol, “The reason for reducing the starting credit limit was to open up the card for more eligible customers.”
He added, “We had a huge number of customers on our waiting list. We think a Rs. 2,000 credit limit is something that anyone can be creditworthy of, in India. All customers will get the same benefits as in our existing card regardless of the credit limit.”
Bajaj anticipates that over one million customers will be availing new cards by the end of the financial year 2022. In this respect, he said, “We are currently present in 300 cities, we expect these customers to come from a mix of Tier I, II, and III cities.”
The startup pivots its focus on Indian youngsters, generally, customers of 25 years of age. Presently, the company issues approximately one lakh cards per month. As an improvement, the company’s non-performing assets level below 2%, as noted by the company’s CEO.
For the future plans, the startup is setting its foot in the UPI(United Payments Interface) segment by the end of financial year 2021 and will be diversifying the company’s business in the longer run. Sharing the same, Bajaj gave details on various spaces the company is most likely to enter into. He said, “We will enter into many verticals over time, including financial services and other consumer areas. Right now our focus is on scaling the current product and launching UPI. Next year we will launch around two more products. In the longer term we will enter into every consumer business.”
Slice raised $20 million as equity fund from its investors, Gunosy and Blume Ventures, in June, 2021. It said it will utilize the fund to expand new options and offerings for customers.
In the month of June this year, CEO and Chairman of Gunosy, Shinji Kimura, said, “Slice’s biggest advantage is how well they understand millennials and Gen Z. The Slice super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards altogether and we are glad to be a part of their growth story.”