Fintech continues to shape the future of business banking worldwide. On September 22, 2025, UK-based fintech Tide announced that it had raised $120 million from private equity giant TPG. The round also saw participation from existing investor Apax. This fresh investment values Tide at $1.5 billion. The funding gives Tide more fuel to expand in India and other international markets while improving its product offerings for small and medium businesses (SMBs).
This article explores Tide’s journey, the details of the new funding, its strategy in India, the competitive landscape, and what this move means for the global fintech ecosystem.
Tide’s Background
Tide launched in 2015 in London with a simple mission: make business banking easy for entrepreneurs and small businesses. Traditional banks often gave small firms long paperwork, slow onboarding, and hidden charges. Tide wanted to change that with technology.
The company built a mobile-first platform that offers business current accounts, expense management, invoicing tools, and integrations with accounting software. In less than a decade, it became one of the largest business banking platforms in the UK.
Tide does not operate as a bank itself. It partners with regulated banks and payment institutions to provide accounts and services. This model allows it to focus on product innovation and customer experience without carrying the heavy compliance burden of a full bank.
Funding Announcement and Investors
On September 22, Tide said it had raised $120 million in growth capital. TPG Growth, a division of TPG, led the round. Apax, one of Tide’s major backers, also took part.
This funding round values Tide at $1.5 billion. That makes it one of the few profitable fintech unicorns from the UK that has expanded into India successfully.
TPG Growth has a track record of investing in high-growth technology and financial companies. Apax has backed fintech leaders globally. Their continued support shows confidence in Tide’s business model and execution.
Why Investors Back Tide
Investors see strong reasons to support Tide:
- Large Market Opportunity: Globally, millions of small businesses remain underbanked. Traditional banks often ignore their needs because of high servicing costs. Tide’s tech-driven approach lowers costs and scales faster.
- Strong UK Base: Tide has a solid presence in the UK with hundreds of thousands of small business customers. This stable revenue base funds expansion abroad.
- India Growth: Nearly half of Tide’s customers now come from India. That market alone can fuel growth for years.
- Diversified Product Offering: Tide is no longer just a business account provider. It now offers lending, payments, and productivity tools.
- Operational Efficiency: Tide runs a lean model with high automation, making its unit economics stronger than many fintech peers.
Tide in India
India has become Tide’s most important market outside the UK. Tide entered India in 2021 and quickly built a large user base. Today, nearly half of its global customers are Indian.
Why India? Several reasons stand out:
- Huge SMB Base: India has more than 60 million micro, small, and medium enterprises (MSMEs). Most still face pain points in banking, credit, and compliance.
- Digital Adoption: UPI and GST pushed millions of small businesses online. They now look for digital solutions to manage money and compliance.
- Regulatory Push: The Indian government actively promotes fintech innovation to formalize the economy.
- Talent Pool: Tide also set up a technology and operations center in Hyderabad, which became a hub for its global operations.
Tide offers business accounts, GST registration support, invoicing, and accounting tools in India. It plans to expand credit offerings as regulations allow.
How Tide Uses the $120 Million
Tide laid out a clear plan for the new funding:
- India Expansion: A large share of the capital will go to expanding Tide’s India business. The company wants to reach millions of new SMB customers in tier-2 and tier-3 cities.
- Product Innovation: Tide will invest in AI-driven credit assessment, automated compliance tools, and seamless integrations with tax and accounting platforms.
- Global Growth: While India is the focus, Tide also plans to test new markets in Asia and Africa.
- Talent and Operations: The company will strengthen its tech teams in Hyderabad and London to support faster scaling.
Competition in Fintech
Tide faces tough competition in both the UK and India.
- In the UK: Rivals include Starling Bank, Monzo, Revolut, and OakNorth. Many of them already hold full banking licenses, which allows them to offer wider products.
- In India: Competition comes from RazorpayX, Open, Paytm Business, and traditional banks launching digital SME platforms.
Tide differentiates itself with a sharp focus on small businesses, a simple app experience, and competitive pricing. It avoids the distractions of retail or corporate banking.
Impact on Small Businesses
Tide’s growth matters because small businesses often struggle to get fair banking services. With Tide, they can:
- Open accounts quickly with minimal paperwork.
- Track expenses, generate invoices, and file GST from one app.
- Access working capital loans and credit lines in a transparent way.
- Focus on growth rather than wasting time on compliance headaches.
The funding boost ensures Tide can reach more businesses and give them the tools they need to grow.
Challenges Ahead
Despite its success, Tide must navigate several challenges:
- Regulatory Scrutiny: Fintech firms face strict rules in both the UK and India. Any regulatory change can affect product rollout.
- Credit Risk: If Tide expands lending aggressively, it must build strong credit risk systems. Poor loans can harm profits.
- Competition: Rivals keep innovating. Tide must stay ahead in product features and pricing.
- Scalability in India: Serving millions of small businesses across diverse regions and languages is complex.
- Profitability Pressure: Investors expect strong returns. Tide must balance growth with profitability.
The Global Fintech Context
Tide’s funding comes at a time when fintech funding has slowed worldwide. Many startups struggle to raise money in 2024–25 because investors demand profits, not just growth.
In this environment, Tide stands out. It has shown strong unit economics, customer loyalty, and a large market in India. That explains why TPG and Apax see it as a long-term winner.
Leadership and Vision
Oliver Prill, Tide’s CEO, has repeatedly said that small businesses are the backbone of every economy but remain underserved. Tide’s vision is to “help small businesses save time and money.”
The leadership team believes India will become Tide’s largest market within a few years. They want Tide to be the first choice for millions of Indian entrepreneurs.
Future Roadmap
With fresh capital, Tide’s roadmap looks ambitious:
- Grow to 10 million small business customers globally within 3–4 years.
- Deepen lending and credit offerings in India.
- Launch new tools for compliance, payroll, and employee benefits.
- Explore partnerships with NBFCs and banks to offer more financial products.
- Expand into Southeast Asia and parts of Africa where small businesses lack digital banking.
Conclusion
Tide’s $120 million funding round marks a big milestone in its journey. With a $1.5 billion valuation, it joins the global fintech unicorn club with strong momentum.
The company’s clear focus on small businesses, successful expansion into India, and efficient business model make it stand out in a crowded market. The new capital will help Tide reach more entrepreneurs, build smarter products, and push the boundaries of digital business banking.
For India’s millions of small firms, this growth means faster access to credit, smoother compliance, and better chances to succeed. For global fintech, Tide’s rise shows that business banking innovation has only just begun.
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