Slice will also be impacted by a recent Master Direction released by the RBI on credit and debit cards.
However, the spokesperson was not available to comment. Moneycontrol reached out to Slice with queries. “They would probably need a huge number of executives just to manage repayments and that is not something that they have or can afford to onboard at this point,” he added. The issue with credit is not giving the money but getting it back.” Given that they have added around 10 lakh new customers in a quarter, that is a huge exposure to manage in terms of repayment. Strategically this is a priority that we want to focus on for the coming years,” Bajaj had said.Īnother fintech executive added on condition of anonymity, “Collections for repayment of dues was also a challenge that they are working on. “We are going to completely shift our focus from just providing credit to an exclusive set of customers to providing overall payments going forward. He had added that lending, which until now was the startup’s core product, will become just one of the offerings on the app, a strategy opposite to that of many fintech players such as Walmart Inc's PhonePe, Google Pay, and Paytm among others, which started as payment apps first and then diversified to various financial services including lending. On May 19, when Slice launched UPI on its platform, the company’s founder and CEO Rajan Bajaj told Moneycontrol in an interview that the company aims to be profitable in a few months’ time and will now shift focus to building a larger payments play, with more payments products on the anvil. At such a time, a clear profitability journey will be crucial for venture funds that may consider investing. The company is also in the midst of raising a fresh round amid a global slowdown and weak investor sentiment. On its app, Slice has merchants including Licious, Miniso, Swiggy, BigBasket, and MakeMyTrip among a number of others. "They have a strong MDR arrangements with a lot of brands. But that only works when users buy the brands that they have a partnership with, hence the pull to drive up in-app purchases," explained a fintech industry source. With more transactions on its app, the company is trying to ensure faster growth in revenues so that it can achieve profitability sooner. This is as opposed to customers using the feature for all their payments with all merchants including those who Slice does not have a partnership with. The focus on in-app payments is in line with the company’s strategy to become a payments player as opposed to only lending.”īy making the feature specific to the app, select customers will be able to use it only for purchases from companies that Slice has a tie-up with, giving the startup the benefit of earning a share of the transaction. PhonePe Beat of Progress Powered by MoneycontrolĪnother fintech executive added, “By allowing Pay-in-3 for select card customers, the company is looking at reducing its credit risk.Pharma Industry Conclave Unlocking opportunities in Metal and Mining.The Challengers Life Insurance Made Simple.
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