Tide achieves unicorn status: Fintech startup draws critical attention with fresh funding round

The UK-based fintech Tide has achieved the coveted unicorn status with a new funding round of $120 million. The round was led by TPG, a renowned investment firm. Tide now serves over 1.6 million small and micro enterprises worldwide, with India, accounting for half of the customer base, regarded as the company's most important growth market. The funding round, a mix of primary and secondary investments, values the company at $1.5 billion. In light of this development, some employees and early investors have divested their shares. The round was supported by The Rise Fund, a cross-sector impact vehicle from TPG, as well as by Apax Digital Funds, an existing investor. Small and micro enterprises globally face significant challenges in business operations, including accounting, billing, and tax matters. While traditional banks and other fintechs offer services to this segment, few solutions specifically address their unique needs. Tide fills this gap with an integrated business platform providing tailored tools. Since its launch in the UK in 2017 and expansion to India in December 2022, Tide has acquired over 800,000 Indian business members. The company plans to integrate one million businesses in India by the end of the year. Oliver Prill, CEO of Tide, continues to see India as a key market despite a slight decline in the growth rate, emphasizing that such vigorous growth is lacking in large parts of Europe. Tide collaborates with around 25 lenders in India to facilitate access to loans and other financial services for small businesses. Moreover, the expansion into new markets like Germany and France is part of the current growth strategy, with a focus on localized experiences through language support. The fresh capital is intended not only to support geographical expansion but also to expand the product range and advance investments in agent-based AI. While many services in the finance and administration sector are already covered, some significant product developments are expected in the coming months, according to Prill.