London-based financial technology company Tide has recently joined the prestigious unicorn club after securing a fresh investment of $120 million led by TPG. The startup now caters to over 1.6 million micro and small businesses worldwide, with a significant portion of them located in India, which happens to be the company’s largest and fastest-growing market.
The latest funding round, valued at $1.5 billion, marks a significant milestone for the eight-year-old company. The financing includes both primary and secondary investments, although specific details on the breakdown have not been disclosed by Tide. Notably, TPG spearheaded the funding through its multi-sector impact vehicle, The Rise Fund, known for its investments in mission-driven companies. Apax Digital Funds, an existing investor, also participated in the round.
Micro and small enterprises globally, including freelancers and solo entrepreneurs, often face challenges in managing various aspects of their businesses, such as accounting, invoicing, and securing loans. While traditional banks and fintech platforms offer services to this segment, these solutions may not always cater to their specific needs. Tide aims to address this gap by providing a comprehensive business platform with tailored tools like accounting integrations, invoicing, business loans, asset finance, payroll services, expense cards, and company registration.
Originally launched in the U.K. in 2017, Tide expanded its operations to India in December 2022 to tap into the vast market of small enterprises in the country. With approximately 60 million micro and small businesses employing over 250 million people, according to recent Indian government data, India presents a significant opportunity for Tide. Since entering the Indian market, the company has onboarded more than 800,000 businesses, surpassing its U.K. member base. In the U.K., where Tide has already achieved profitability, the company serves around 14% of the small and medium business market.
CEO of Tide, Oliver Prill, emphasized the trend towards formalization in business operations, highlighting the importance of transitioning away from cash transactions. Despite some economic challenges, particularly in India, Prill remains optimistic about the country’s growth potential compared to other regions like continental Europe and the U.K.
Tide estimates that approximately four million micro and small businesses launch in India each year, demonstrating the demand for services like formal credit access, UPI payments, and navigating the complex tax system. Through its digital platform available on iOS and Android, Tide caters to these businesses by offering a range of financial services.
