Powered by India’s small businesses, UK fintech Tide becomes a TPG-backed unicorn

British fintech company Tide has achieved unicorn status following a substantial funding round of $120 million, spearheaded by TPG. The startup, which focuses on serving micro and small enterprises, has amassed over 1.6 million clients worldwide, with more than half of these businesses located in India—their fastest-growing and largest market. This latest investment is a blend of primary and secondary funding sources, although the specifics of the allocation have not been disclosed. With this infusion of capital, Tide is now valued at $1.5 billion. The investment round included participation from existing backers, including the Apax Digital Funds, and was facilitated by TPG's multi-sector impact investment initiative, The Rise Fund, which has a history of backing over 85 socially responsible enterprises. Micro and small enterprises globally, including freelancers and solopreneurs, often find themselves overwhelmed by business management tasks such as accounting and invoicing. While traditional banks and various fintech solutions exist, they often fall short of catering to the unique requirements of this segment. Tide aims to address these challenges with its comprehensive platform, which offers a suite of tools such as accounting integrations, invoicing, business loans, payroll, and more. Since its launch in the U.K. in 2017, Tide expanded into India in December 2022, recognizing the potential within the country’s estimated 60 million micro and small businesses employing over 250 million people, according to recent statistics. Since entering the Indian market, Tide has successfully enrolled over 800,000 members, surpassing its U.K. member base. In the U.K., Tide has already captured about 14% of the small and medium business sector and is currently profitable. CEO Oliver Prill highlighted the importance of formalizing business practices, noting that cash transactions pose a greater challenge than competition itself. He acknowledged that while growth rates in India have slightly slowed, they remain impressive compared to other regions, such as continental Europe and the U.K. Tide estimates that roughly four million new micro and small businesses are established in India each year. These businesses often seek assistance with formal credit access and navigating the complexities of India’s Goods and Services Tax. Tide supports these needs through its user-friendly digital platform, accessible via iOS and Android apps. The company aims to onboard one million Indian businesses by year-end, with strong interest from tier-3 cities, according to Gurjodhpal Singh, CEO of Tide India. In addition to its operations in the U.K. and India, Tide plans to launch in Germany in May 2024 and has recently expanded into France. The startup tailors its offerings to suit each market, including language support. With the new funding, Tide intends to extend its geographical reach, enhance its product offerings, and invest in advanced AI solutions. Prill hinted at significant upcoming product launches as the company aims to fill existing service gaps. Currently, Tide employs over 2,500 individuals across its international operations.