UK-based fintech startup Tide has dramatically entered the unicorn club with a groundbreaking $120 million funding round, achieving a remarkable $1.5 billion valuation. Surprisingly, this incredible growth story finds its strongest momentum in India, where over 800,000 small businesses have embraced Tide’s innovative platform since its December 2022 launch.
Tide Unicorn Achievement Through Strategic Global Expansion
TPG’s Rise Fund led this significant investment round, which included participation from existing investor Apax Digital Funds. The funding represents a mix of primary and secondary investment, enabling employee and early investor share sales. Consequently, this financial milestone positions Tide among the most valuable fintech startups serving micro and small enterprises worldwide.
India’s Massive SME Market Drives Tide Unicorn Growth
India’s contribution to Tide’s success cannot be overstated. The platform now serves more than 1.6 million businesses globally, with Indian members surpassing the UK’s 800,000 user base. Furthermore, India’s approximately 60 million micro and small businesses employ over 250 million people, creating an enormous addressable market.
Key factors driving Tide’s Indian success:
- Four million new micro businesses launch annually in India
- Strong demand from tier-3 cities and rural areas
- Need for formal credit access and digital payment solutions
- Government initiatives promoting business formalization
Comprehensive Business Platform Solutions
Tide addresses critical pain points for small businesses through its unified platform. Traditional banks often fail to provide purpose-built solutions for this segment. Therefore, Tide offers tailored tools including:
- Accounting integrations and invoicing systems
- Business loans and asset financing options
- Payroll management and expense cards
- Company registration services and bill payments
Future Expansion and Product Development
With fresh funding, Tide plans aggressive geographical expansion beyond its current UK, India, Germany, and France operations. The company will enhance its product offerings and invest in agentic AI capabilities. Significantly, Tide aims to onboard one million Indian businesses by year-end 2024.
CEO Oliver Prill emphasizes that cash transactions remain the primary competitor rather than other fintech companies. This perspective highlights the massive opportunity in converting informal businesses to formal digital platforms.
Frequently Asked Questions
What makes Tide different from traditional banks?
Tide provides purpose-built solutions specifically designed for micro and small businesses, offering integrated services that traditional banks typically don’t provide in a unified platform.
How many businesses does Tide currently serve in India?
Tide has onboarded over 800,000 Indian businesses since its December 2022 launch, surpassing its UK member base and becoming its largest market.
What services does Tide offer to Indian small businesses?
Tide provides accounting integrations, invoicing, business loans, asset finance, payroll services, expense cards, company registration, and access to 25 lending partners.
How does Tide plan to use the new funding?
The $120 million will fund geographical expansion, product enhancement, and investments in agentic AI technology to better serve small businesses globally.
Is Tide profitable in any markets?
Yes, Tide has achieved profitability in the UK market, where it serves approximately 14% of the country’s small and medium business segment.
What makes India such an important market for Tide?
India’s vast base of 60 million micro and small businesses, combined with high digital adoption rates and government formalization initiatives, creates exceptional growth opportunities for digital business platforms.
