GaragePreneurs Internet Pvt. Ltd, which operates fintech firm Slice, is set to raise debt funding from the investment and consulting arm of Gunosy Inc., a Japan-based news and technology services company.
According to regulatory filings by Bengaluru-based Slice, it will raise Rs 22.5 crore ($3 million at current exchange rate) from Gunosy Capital Pte. Ltd.
For this, the company will issue one equity share with a face value of Re 1 and a premium of Rs 5,388 to the investment firm. It will also issue 22.49 lakh Series A5 CC debentures at a face value of Rs 100 to Gunosy.
Following the issue, Gunosy shall hold a 8.12% stake in Slice on a fully diluted basis, Slice said in its filing. The development was first reported by Inc42.
Slice – initially known as Slicepay – was set up in 2016 by Rajan Bajaj. The company says it aims to build a “smart, simple and transparent financial platform” aimed at the youth.
It currently offers a digital credit solution that is targeted at young consumers. Going by its website, the “Slice card” is a zero-fee solution that offers instant verification and activation. It also allows for longer repayment periods than credit cards.
According to VCCEdge, the data research arm of Mosaic Digital, GaragePreneurs reported net sales of Rs 8.38 crore and Rs 3.28 crore for the 2019 and 2018 financial years, respectively.
It also reported Ebitda (earnings before interest, taxes, depreciation and amortisation) losses of Rs 8.75 crore and Rs 7.09 crore for the respective periods.
Going by VCCEdge data, Slice raised $1.4 million in October last year via four debt issues. Prior to that, in September, it had raised $2.9 million from a firm jointly owned by Das Capital and Gunosy Capital.
In October 2017, the company raised $2 million (around Rs 13 crore) in a Series A round from Japan-based Das Capital and Smile Venture Partners, the Russian early-stage investor. Blume Ventures, an existing investor in the firm, also participated in that round.