Takeaways by Saasverse AI
- Tide | $120 Million | Latest Funding Round | FinTech for SME Management.
- Led by TPG’s The Rise Funds, with participation from Apax Digital Funds.
- Achieves $1.5 Billion valuation, plans for AI-powered product expansion and global market entry.
Tide, a leading UK-based FinTech company catering to small and medium-sized enterprises (SMEs), has successfully raised $120 million in its latest funding round, earning the prestigious status of a unicorn with a $1.5 billion valuation. This funding round was spearheaded by TPG’s The Rise Funds, a private equity giant renowned for backing socially impactful, high-growth companies. Apax Digital Funds, an existing investor, also participated in this round.
Founded in 2017, Tide has rapidly emerged as a dominant player in SME financial management in the UK and beyond. The company boasts a global user base of 1.6 million, with approximately 800,000 users in the UK, representing a 14% market share of UK SMEs. Tide’s key offerings include a suite of services tailored to SMEs, such as expedited business registration, financial management tools, team management solutions, business accounts, credit services, and payment systems. With operations already underway in Germany and France, alongside a significant presence in India with another 800,000 users, this latest funding will fuel Tide's international expansion efforts.
TPG’s The Rise Funds, which focus on investments generating measurable societal benefits alongside financial returns, will also bring strategic guidance, with TPG Partner Yemi Lalude joining Tide’s board. According to Tide CEO Oliver Prill, this funding will not only deepen the company’s market presence in existing geographies but also enable them to invest heavily in artificial intelligence (AI) to enhance their product suite. By integrating AI capabilities, Tide aims to further streamline SME operations, saving businesses both time and money.
This funding milestone places Tide alongside other prominent UK-based FinTech unicorns such as Revolut and Monzo. While Revolut's valuation has surged to nearly $65 billion in recent rounds, Tide’s targeted approach to SMEs positions it uniquely within the competitive digital banking and B2B SaaS space.
Saasverse Insights
The rise of Tide underscores the untapped potential within the SME-focused FinTech niche, particularly when coupled with AI advancements. In an increasingly crowded sector, Tide’s emphasis on providing comprehensive, AI-powered business management solutions illustrates a promising path for B2B SaaS innovation. Moreover, its international expansion strategy signals the global scalability of FinTech solutions, a trend that is reshaping financial services worldwide. For founders and investors, Tide serves as a case study in blending technology and financial services to address underserved markets, offering valuable lessons for scaling and differentiation in a competitive landscape.