Tamil Nadu-based digital payment leader Slice receives NCLT approval for groundbreaking merger with NESFB, promising enhanced financial inclusion through unified digital-first banking services.
In a landmark development for India’s fintech landscape, consumer payments and lending company Slice has secured final approval from the National Company Law Tribunal (NCLT) for its merger with North East Small Finance Bank (NESFB). The merger, approved by NCLT’s Guwahati bench, marks a significant milestone in the convergence of digital-first banking and traditional financial services.
The approved Scheme of Arrangement and Amalgamation encompasses multiple entities, including Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, and RGVN (North East) Microfinance Limited, among others. This consolidation represents a strategic move to create a comprehensive financial institution that combines Slice’s technological prowess with NESFB’s established regional banking expertise.
The merger follows a series of crucial regulatory clearances, including approvals from the Competition Commission of India (CCI), Registrar of Companies (RoC), and no-objection certificates from the Reserve Bank of India (RBI) and the Income Tax Department.
Unified Operations and Brand Identity
The merger will integrate Slice’s cutting-edge digital infrastructure with NESFB’s extensive grassroots network, creating a unified banking institution that promises to revolutionize financial services delivery. The combined entity will operate under a single brand identity, leveraging both organizations’ strengths to offer an enhanced suite of financial products and services.
“This merger represents not just a milestone but a testament to our shared vision of redefining banking experiences and expanding accessibility for all,” says Rajan Bajaj, Founder and CEO of Slice. “We are excited to merge with NESFB, and together, we will continue to innovate and strengthen financial access, technology-driven banking systems, and customer service.”
Dr. Ramesh Arvind, a prominent fintech expert based in Chennai, highlights the regional implications: “This merger is a positive development for Tamil Nadu’s fintech ecosystem, as it encourages the creation of products and services that can reach customers in new, innovative ways. Local startups can benefit from the market expansion and potential partnerships that arise from such high-profile mergers.”
Impact on Tamil Nadu’s Startup Ecosystem
The merger’s ripple effects are expected to significantly boost Tamil Nadu’s burgeoning startup ecosystem, particularly in the fintech sector. As a state known for its innovative approaches in fintech, SaaS, and edtech, Tamil Nadu stands to benefit from increased opportunities for collaboration and partnership with the newly merged entity.
The combined institution’s focus on digital innovation and financial inclusion aligns perfectly with Tamil Nadu’s vision of becoming a leading fintech hub. Local startups will have new opportunities to develop complementary products and services, potentially leading to increased investment and job creation in the region.
Key Statistics and Market Impact
According to NASSCOM’s 2023 report, India’s fintech sector is projected to grow by over 20% annually, with digital payments expected to reach $10 trillion by 2026. The merger positions the combined entity to capture a significant share of this growing market, particularly in underserved regions.
The unified banking institution will leverage:
- NESFB’s established presence in rural and semi-urban areas
- Slice’s advanced digital payment and lending infrastructure
- Combined customer base spanning traditional and digital-first banking users
- Integrated technology platform for seamless service delivery
Implementation
The newly merged entity is expected to announce detailed plans for transitioning customers, employees, and stakeholders to the unified system. The integration will focus on maintaining service continuity while introducing enhanced features and capabilities that leverage both organizations’ strengths.
For Tamil Nadu’s startup ecosystem, the merger represents a significant opportunity to participate in the next phase of India’s financial services evolution. Local startups can potentially partner with the merged entity to develop innovative solutions for financial inclusion and digital banking.
