Tide Fintech Unicorn: Backed by Indian Small Businesses & TPG

Tide Achieves Unicorn Status with $120 Million Funding

Fintech company Tide, headquartered in the U.K., has officially joined the unicorn club following a new funding round of $120 million. This investment was spearheaded by TPG, and positions the company to better serve its growing base of over 1.6 million micro and small enterprises worldwide.

Global Expansion and Market Leadership

A significant portion of Tide’s customer base – exceeding 50% – is located in India, which currently represents the company’s largest and most rapidly expanding market. The funding round comprised both primary and secondary investments, resulting in a valuation of $1.5 billion for the eight-year-old startup.

The investment included share sales from employees, early investors, and select minority shareholders. TPG’s participation came through The Rise Fund, a multi-sector impact investment vehicle with a portfolio of over 85 mission-driven organizations. Existing investor, Apax Digital Funds, also contributed to this round.

Addressing the Needs of Micro and Small Businesses

Micro and small enterprises, including freelancers, contractors, and solopreneurs, often dedicate considerable time to essential business functions. These tasks encompass accounting, invoicing, tax compliance, loan acquisition, and expense management.

While conventional banks and other fintech companies provide services to this sector, many solutions aren’t specifically designed to address their unique requirements. Tide differentiates itself by offering a comprehensive business platform with tools tailored to these needs, such as accounting integrations, invoicing capabilities, business loans, asset financing, payroll services, expense cards, and company registration assistance.

Rapid Growth in India and Beyond

Tide initially launched in the U.K. in 2017 and subsequently expanded into India in December 2022, aiming to capitalize on the country’s substantial number of small businesses – approximately 60 million, employing over 250 million individuals, according to recent government data.

Since entering the Indian market, Tide has onboarded over 800,000 businesses, referred to as “members,” surpassing its U.K. member base of nearly 800,000. In the U.K., the company already holds a 14% share of the small and medium business market and operates profitably.

Focus on Formalization and Growth

“The trend towards formalization is substantial. Therefore, our primary challenge isn’t competition, but rather the prevalence of cash transactions,” stated Oliver Prill, CEO of Tide, during an interview.

He further noted that while India’s growth rate has slightly moderated, it remains remarkably strong compared to continental Europe or the U.K.

Supporting Indian Entrepreneurs

Approximately 4 million micro and small businesses are established annually in India. These ventures frequently require assistance with accessing formal credit, utilizing the Unified Payments Interface (UPI) for payments, and navigating the Goods and Services Tax (GST) system.

Tide provides support through its digital platform, accessible via apps on both iOS and Android. The company anticipates onboarding 1 million businesses in India by the end of the current year, with significant demand originating from tier-3 cities and smaller towns.

Financial Services and Partnerships

In India, Tide collaborates with around 25 lenders to facilitate credit access for small businesses, matching partners to individual business needs. Additional services offered include fixed deposits, bill payments, bank transfers, and ATM cash withdrawals.

International Expansion and Future Investments

Beyond the U.K. and India, Tide expanded into Germany in May 2024 and France earlier this month, providing a localized experience in each market, including language support.

The newly acquired funding will be allocated to further geographic expansion, product enhancement, and investment in agentic AI. The company intends to fill existing gaps in its service offerings, with major product launches anticipated in the coming months.

Currently, Tide employs over 2,500 people globally across its operations.