The streets of Koramangala, among the largest communities in Bangalore, are plastered with hoardings and banners of digital payment services. Every few steps, you discover a bank, and workplaces of fintech start-ups.

When Mohammed Nayeem wanted to get a credit card, he understood his options were restricted. He applied for a charge card at RBL Bank, a Mumbai-headquartered bank that has actually been around for more than 70 years. In the days that followed, he answered a lot of their questions over telephone call and supplied them with a variety of documents.

The calls kept coming, however the card never did.

Nayeem works as a freelance interior designer and earns approximately $580 monthly, he informed TechCrunch in an interview last year. This is more than enough for a lot of banks in the nation to release him a credit card, the truth that he does not have a traditional kind of job was off-putting to all of them.

Tens of millions of people like Nayeem in India today can’t get a credit card. They have actually lived much of their lives on debit cards and with little to no credit score. There are close to 1 billion debit cards in usage in India today, but only about 50 million charge card in flow. Even as scores of start-ups today are attempting to bridge this gap, really couple of are serving the young market.

Ultimately, Nayeem came across a startup called Slice, which provided him with a Slice Card that for all purposes and intents functions as a charge card. For more than a year now, he has actually been utilizing Slice’s offering, and his experience has been “fantastic,” he told TechCrunch.

Slice deals a pre-paid card that comes with a pre-approved credit limit, Rajan Bajaj, co-founder and CEO of the four-year-old startup, told TechCrunch in an interview. The Koramangala-headquartered start-up focuses on individuals like Nayeem– young demography comprising mostly of trainees, freelancers, start-up employees and blue-collar employees.

Bajaj said more than 250,000 consumers utilize Slice’s card today. In the course of a month, a typical user carries out about 10 transactions to digital services, such as Swiggy and music apps, and spends about Rs 10,000 ($132). As users invest more, Slice boosts their month-to-month limitation to approximately Rs 100,000 ($1,320).

Employees at Slice, a Bangalore-based fintech startup (Image Credits: Slice) However offering these users a card is only part of the worth proposal. The biggest tourist attraction perhaps for users is that they are able to construct credit rating, which would eventually make them eligible for better charge card from other firms and banks, and enable them to protect loans for various purposes. In about six months with Slice, many users have a credit history of more than 700, said Bajaj.

The start-up likewise uses users the ability to protect a small sachet of loan items and pay them at zero-cost interest and track their costs.

On Thursday, Slice announced it had actually raised $6 million in a pre-Series B financing round. The round was led by Japan-based Gunosy, while the U.S.-headquartered EMVC, Kunal Shah of CRED, Better Capital and existing investor Singapore-headquartered Das Capital took part. It also counts Blume Ventures, Traxcn Labs and China’s Finup amongst its investors.

Bajaj said Slice plans to release the fresh capital to expand its reach. It prepares to reach 500,000 young consumers in the next year.

Raising capital at the height of a worldwide pandemic is a testimony to Slice’s technology to determine the credit reliability of consumers and its underwriting methodology, he stated. Bajaj cautioned that he expects to see somewhat more defaults in the coming months due to regional conditions and new rules.

For Slice, formerly understood as SlicePay, that figure would still remain below 5%, and the start-up, which has actually been profitable given that last year, is well positioned to navigate it.

“Our company believe slice has a sustainable advantage as it has translated young credit users’ needs and has developed a deep understanding of credit threat and inexpensive circulation utilizing technology,” said Yuki Maniwa, director of Gunosy, in a declaration.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.