Regulatory challenges, including compliance with India’s data localization rules, could pose hurdles to Tide’s further expansion in the country.

Despite slower growth compared to previous years, Tide expects to reach 1 million Indian members by the end of 2025, with strong demand for financial services among small businesses.

Tide is rapidly adopting AI to enhance automation across its services, similar to efforts by other UK fintechs like Revolut, aiming to improve efficiency and customer experience.

Tide, a UK-based business management platform, has secured a $120 million investment led by TPG, valuing the company at $1.5 billion, marking a significant milestone in its growth.

The company plans to use the new funds to expand operations in India and Europe, including Germany and France, and to enhance its product offerings with artificial intelligence.

With over 2,500 employees worldwide, Tide is preparing to launch new products and leverage its recent funding to fill service gaps, expand geographically, and solidify its position as a leading SME fintech globally.

Tide now serves over 1.6 million micro and small enterprises globally, with more than half based in India, its largest and fastest-growing market, driven by India’s digital payments boom and integration with local systems like UPI.

Since launching operations in India in 2022, Tide's rapid growth in the country accounts for over half of its global customer base, reflecting the importance of emerging markets in its expansion strategy.

In India, Tide offers payments, savings, credit, and insurance products to small businesses such as sole proprietors, artisans, and freelancers, working with around 25 non-banking lenders to facilitate credit.

The company is considering applying for a regulatory banking license in India, similar to its approach in the UK, where it has not pursued a banking license but is evaluating options.

Funding will support product development and AI capabilities to stay competitive amid rising competition from traditional banks and fintech challengers, focusing on automating and streamlining services for small businesses.

Tide’s revenue model includes transaction fees, subscriptions, and credit margins from its integrated platform, which offers current accounts, payment processing, lending, and software subscriptions.

While profitable in the UK, Tide is heavily investing in new markets like India, where it operates without a formal banking license, offering a range of financial products to small businesses.

Tide employs a range of financial services including accounting integrations, invoicing, business loans, asset finance, payroll, expense cards, and company registration, working with about 25 lenders to provide credit.