Fintech outliers in the funding winter despite tough regulatory framework

Last week, Slice, a payment app, acquired a 5 per cent stake in North East Small Finance (NESF) for $3.42 million — the first such deal by a fintech in a small finance bank.

Slice (valued at $1.5 billion, and backed by Tiger Global, Blume Ventures and Axis Bank) will technically get a toehold in a scheduled commercial bank if NESF were to get a licence to morph into one down the line. Such a transition is well within the banking regulator’s declared framework.

The transaction has to be seen in a larger context.