Instalment 1: Farouk's Story
After six years of bootstrapping - I’m excited to share that Slice has raised a $17.5 million equity and debt round led by Peak XV Partners and Roadnight Capital.
After six years of bootstrapping - I’m excited to share that Slice has raised a $17.5 million equity and debt round led by Peak XV Partners (formerly Sequoia Capital India & SEA) and Roadnight Capital.
Our journey began over a decade ago - when I met my co-founder Yannick while working at a big bank's Collections and Hardship department.
We spoke to numerous customers who had used credit cards to pay for a trip overseas - often for a family reunion or a cultural event. These customers wanted to be financially responsible, but because they had used a product with such a high interest rate, they were falling behind and feeling powerless.
We wanted to create a product that would allow customers to lock-in flights, and then repay in manageable instalments before their trip. Our vision was to help customers access travel - while also helping them to budget sensibly and avoid financial hardship.
In 2018, we launched our first product - PayLater Travel. In the beginning, we spoke to every customer on the phone - we manually made bookings for them, and paid upfront with our own credit cards (the irony!). Despite the janky product, our customers loved locking in flight prices and having the ability to pay it off before travel. We knew we were onto something!
But behind the scenes, there’s also been plenty of unglamorous moments. In the early days, we couldn’t access debt funding (and equity investors weren’t interested either). To keep up with demand for our product, we maxed out our credit cards and took out personal loans. We were all in - we were growing quickly, and the customer stories about how much they appreciated our product had us riding high.
When the pandemic hit in 2020, our world came crashing down.
On March 18 2020, the borders closed. We lost 95% of our revenue overnight.
We were terrified - but we were also too busy to feel sorry for ourselves. Thousands of customers had had their plans ruined and their flights cancelled. We hunkered down in a war room and made hundreds of calls to airlines to ensure our customers got maximum refunds and credits.
At the end of 2020, we were limping along. The pandemic raged on and borders looked to remain closed indefinitely. We’d tried regional flights and regional stays, but it wasn’t enough to make up the shortfall.
We knew the pandemic would eventually end, and we would be rewarded if we managed to survive. But for how long?
We were sitting in the office, feeling miserable and frustrated. Yannick would sometimes boot up Flight Radar 24 and we’d stare at the screen. You could count the number of flights over Australia on one hand.
Then he started moving the radar over the rest of the world. We were surprised to see that Europe and the US was still a hive of activity, with flights criss-crossing the screen.
Looking back - what we did next was pretty crazy. With three months of runway remaining and our backs against the wall, we decided to launch in the US.
We needed more money. We looked at each other and we agreed - we’d put our own money in. I sold my car and Yannick refinanced his home.
In four weeks, we launched in the US. With minimal marketing, customers started discovering us. Our product spoke to an unmet need, and within three months, our revenue was back to where it was pre-COVID.
We’d survived by the skin of our teeth.
Sometimes when I tell this story to friends, their jaws drop and they express horror at how much we struggled and how much we had to sacrifice. While there has undoubtedly been pain, I wouldn’t have it any other way. One of my favorite quotes was said by Seneca:
“I judge you unfortunate because you have never lived through misfortune. You have passed through life without an opponent—no one can ever know what you are capable of - not even you.”
Fast forward to 2024. I feel deeply fortunate to have secured an additional $10 million debt facility from Roadnight Capital alongside a Seed investment from Peak XV Partners. Our Seed round will help us improve and expand our product - particularly by scaling Slice Pay - our B2B product that allows our travel agent partners to offer layby to their customers.
Whats more, I feel blessed with a wonderful team, supportive friends, and to have helped 70,000 customers go on wonderful trips and create core memories.
The best part is, we’re only getting started! There are still millions of customers worldwide, falling in unsustainable debt to fund their travels and we’re here to change that!
If you resonate with our mission, follow Instalments by Slice for a behind-the-scenes look at the scrapes, scars, and secrets of building a company with the ambition to make travel accessible for everyone.
And if you want to get on board, check out some of our open roles!
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