Fintech startup Slice raised $20 million in a financing round led by existing investors Gunosy and Blume Ventures.

Focusing on Gen Z and millennial customers issues credit and payment cards in partnership with Visa and SBM Bank India.

The Bengaluru-based company will use the funds to diversify its offerings and expand its team, founder and CEO Rajan Bajaj told Business2Business.

"The banking industry in India has always viewed credit cards as a loan product rather than a high-frequency payment instrument," Bajaj said.

"Therefore, banks' focus is to optimize the fees related to credit cards and there are portfolio teams to increase the loan book. This leaves the customer experience in a corner. However, we see it as a paid product, and we are solving it as a consumer experience problem with a 'customer-first approach in mind. " he said.

This investment takes Slice's total equity funding to $30 million since it was founded in 2019.

Slice has 3 million registered users and currently reports 25 percent monthly volume growth.

“The biggest advantage of Slice is how well they understand millennials and Gen Z. The Slice Super card has the potential to fundamentally change the way the next generation thinks about the concept of credit cards and we are delighted to be a part of their growth story, " said Shinji Kimura, chairman, and CEO, Gunosy said, as quoted by the publication.

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