UK fintech Tide just crashed into the unicorn club with a $120 million funding round led by TPG, valuing the startup at $1.5 billion. The real story? More than half of Tide's 1.6 million small business customers are now in India, making it the company's largest market and driving this milestone moment for B2B fintech.
Tide just pulled off something remarkable - turning India's massive small business market into a unicorn-making machine. The UK-based fintech announced it's raised $120 million in a TPG-led round that values the company at $1.5 billion, marking its entry into the exclusive unicorn club after eight years of building.
But here's what makes this funding round fascinating: India has become Tide's secret weapon. Since launching there in December 2022, the startup has onboarded more than 800,000 Indian businesses - actually surpassing its home UK market of nearly 800,000 members. "There is a huge trend to formalization. So, our biggest enemy is cash, and not any competitors," Tide CEO Oliver Prill told TechCrunch.
The numbers tell the story of why TPG was willing to write such a large check. India launches around four million micro and small businesses every year, according to Tide's estimates, and the country has roughly 60 million micro and small businesses employing over 250 million people. That's a market that traditional banks have struggled to serve effectively.
TPG backed the round through The Rise Fund, its impact investing vehicle that's deployed capital into over 85 mission-driven companies. The funding combines both primary investment and secondary share sales from employees, early angels, and minority investors, though Tide declined to break down the exact split. Existing investor Apax Digital Funds also participated.
What sets Tide apart in the crowded fintech space is its approach to micro and small enterprises - the contractors, freelancers, and solopreneurs who spend countless hours on business management instead of actually running their businesses. While plenty of fintechs target SMEs, most solutions feel like afterthoughts rather than purpose-built platforms.
Tide's unified business platform handles accounting integrations, invoicing, business loans, asset finance, payroll, expense cards, and even company registration. In India specifically, the platform helps businesses navigate complex local requirements like accepting UPI payments, managing Goods and Services Tax compliance, and accessing formal credit through partnerships with around 25 lenders.
