Tide Joins Unicorn Ranks with $120 Million Funding Round
U.K.-based fintech company Tide has officially entered the unicorn club, achieving a valuation of $1.5 billion following a substantial funding round of $120 million led by TPG. This milestone comes as Tide expands its services to over 1.6 million micro and small enterprises globally, with a significant portion-more than half-located in India, the company’s largest and fastest-growing market.
Funding Details and Valuation
The recent funding round, which comprises both primary and secondary investments, has not been fully detailed in terms of the exact split. However, it includes share sales from employees, early angel investors, and a few minority stakeholders. TPG’s investment comes through its multi-sector impact vehicle, The Rise Fund, which has a history of backing over 85 mission-driven companies. Existing investor Apax Digital Funds also participated in this latest round.
Addressing the Needs of Small Enterprises
Globally, micro and small enterprises-including contractors, freelancers, and solopreneurs-often find themselves bogged down by business management tasks such as accounting, invoicing, and securing loans. Traditional banks and fintech solutions frequently fall short of addressing the unique needs of this segment. Tide aims to fill this gap with a unified business platform that offers tailored tools, including accounting integrations, invoicing, business loans, asset finance, payroll, expense cards, and even company registration.
Expansion into India
Tide was initially launched in the U.K. in 2017 but made a strategic move to expand into India in December 2022. This decision was driven by the vast potential of the Indian market, which boasts around 60 million micro and small businesses employing over 250 million people, according to recent data from the Indian government. Since its entry, Tide has successfully onboarded over 800,000 Indian businesses, surpassing its U.K. member base of nearly 800,000. In the U.K., where Tide has already achieved profitability, the company serves approximately 14% of the small and medium business market.
Oliver Prill, CEO of Tide, emphasized the importance of formalization in the Indian market, stating, “Our biggest enemy is cash, and not any competitors.” He noted that while growth rates in India have slowed slightly, they remain impressive compared to those in continental Europe and the U.K.
The Landscape of Small Business Growth in India
Tide estimates that around four million micro and small businesses are launched in India each year. These enterprises often seek assistance in accessing formal credit, accepting payments through the Indian government-backed Unified Payments Interface (UPI), and navigating the Goods and Services Tax (GST) system. Tide’s digital platform, available as an app on both iOS and Android, is designed to meet these needs.
The company aims to onboard one million businesses in India by the end of this year, with strong demand emerging from tier-3 cities-smaller towns that typically have limited digital and financial infrastructure. Gurjodhpal Singh, CEO of Tide India, highlighted this growing interest, indicating a significant opportunity for the fintech to expand its reach.
Collaborations and Services Offered
In India, Tide collaborates with approximately 25 lenders on its platform to facilitate credit for small businesses, tailoring recommendations based on individual business needs. The company also provides a range of services, including fixed deposits, bill payments, bank transfers, and cash withdrawals through ATMs.
Geographic Expansion and Future Plans
Beyond the U.K. and India, Tide has also launched operations in Germany and France, offering localized experiences that include support in local languages. With the recent funding, Tide plans to further expand its geographical footprint, enhance its product offerings, and invest in agentic AI technologies.
Prill noted that while Tide already covers a broad spectrum of financial and administrative services, there are still gaps to address. “In the next few months and quarters, you’ll see some major developments in that area,” he stated, hinting at upcoming product launches made possible by the latest funding round.
Workforce and Global Operations
Currently, Tide employs over 2,500 people across its global operations, reflecting its rapid growth and commitment to serving small businesses. The company’s focus on innovation and customer-centric solutions positions it well to capitalize on the burgeoning market for fintech services tailored to micro and small enterprises.
Conclusion
Tide’s recent funding round and subsequent valuation as a unicorn underscore the growing importance of fintech solutions tailored to the unique needs of micro and small businesses. With a strong foothold in India and plans for further expansion, Tide is poised to play a significant role in the ongoing transformation of the financial landscape for small enterprises. As the company continues to innovate and adapt, it stands as a testament to the potential of fintech in addressing the challenges faced by small businesses worldwide.
