CCI approves Slice merger with North East Small Finance Bank

By siliconindia  |  Wednesday, March 13, 2024

CCI approves Slice merger with North East Small Finance Bank
The Competition Commission of India (CCI) has approved the merger between Bengaluru's fintech unicorn 'Slice' and Guwahati's North East Small Finance Bank (NESFB). This significant collaboration, backed by investment giants Tiger Global and Insight Partners, represents a crucial step in combining technology with inclusive financial services at the grassroots level. In October of the previous year, the Reserve Bank of India (RBI) granted a no-objection certificate (NOC) for the merger, laying the groundwork for this transformative partnership. With the merger completed, the newly established SFB Slice plans to convert its existing prepaid accounts into comprehensive banking services.
Recognized for its credit and payment offerings, Slice sees this merger as a strategic move to bolster its competitive position in the lending sector. This initiative resonates with the mutual objective of leveraging technology to promote extensive financial inclusion nationwide. With a presence spanning 208 branches across seven North Eastern states and West Bengal, NESFB concentrates on serving rural customers and the bottom of the pyramid segment. The merger is anticipated to empower the united entity to attract public deposits, consequently lowering the cost of funds for lending purposes.
During the fiscal year 2023, SFB Slice witnessed a remarkable threefold surge in operating revenue, reaching Rs 847 crore. Of this amount, Rs 472 crore stemmed from interest on loans distributed through its NBFC subsidiary, while Rs 375 crore was derived from fees and commissions. Nonetheless, losses surged by 60% to Rs 406 crore during the corresponding period.
The CCI has also granted approval for the merger between Garagepreneurs Internet Private Limited, the parent company of Slice, and its subsidiaries Quadrillion Finance Private Limited (QFPL), an NBFC, and Intergalactory Foundry Private Limited (IFPL), along with the bank. The proposed transaction also involves the wholly-owned subsidiary of the Guwahati-headquartered bank RGVN (North-East) Microfinance Limited.
Following approval from the CCI, TPG Growth V SF Markets Pte. Ltd. and Waverly Pte. Ltd. have been authorized to acquire a stake in the Asian Institute of Nephrology and Urology (AINU) through Asia Healthcare Holdings Pte. Ltd. Subsequent to this approval, TPG Growth V SF Markets Pte Ltd and Waverly Pte Ltd will secure redeemable preference shares in AHH, jointly owned and controlled by the TPG Group and Waverly. Moreover, the regulator has endorsed AHH's proposed acquisition of a majority shareholding in the Asian Institute of Nephrology and Urology Pvt Ltd (AINU), marking significant progress in the healthcare investment arena.

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