In the bustling world of global fintech, a U.K.-based startup named Tide has quietly ascended to unicorn status, propelled by an unexpected engine: the micro and small enterprises of India. Founded in 2015, Tide offers a suite of digital banking and financial tools tailored for small businesses, including accounting, invoicing, and payment services. This week, the company announced a $120 million funding round led by private equity giant TPG’s The Rise Fund, catapulting its valuation to $1.5 billion—a more than twofold increase from its 2021 figure of around $650 million, as reported in a recent TechCrunch article.

What sets Tide apart is its explosive growth in India, where it launched operations in 2022. Today, more than half of its 1.6 million global customers hail from the subcontinent, dwarfing its user base in the U.K. This surge is no accident; Tide has capitalized on India’s digital payments boom, integrating seamlessly with local systems like the Unified Payments Interface (UPI). CEO Oliver Prill attributes this success to the platform’s focus on underserved entrepreneurs, providing them with AI-driven credit assessments and streamlined administrative tools that traditional banks often overlook.

The Indian Growth Engine

Tide’s strategy in India reflects a broader trend of Western fintechs tapping into emerging markets for scale. By offering features like instant invoicing and expense tracking via mobile apps, the company has attracted over 800,000 Indian users in just three years. According to details shared in the Tech Funding News coverage, Tide’s Indian arm now contributes significantly to its revenue, with annual recurring revenue hitting $100 million globally. This funding round, which also saw participation from existing investor Apax Digital Funds, underscores investor confidence in Tide’s dual-market model.

Yet, challenges loom. India’s fintech sector is fiercely competitive, with homegrown players like Razorpay and PhonePe dominating digital payments. Tide differentiates by bundling banking with business management tools, but regulatory hurdles—such as compliance with the Reserve Bank of India’s strict data localization rules—could slow expansion. Prill, in interviews, has emphasized adapting to local needs, including partnerships with Indian banks for lending products.

TPG’s Strategic Bet

The involvement of TPG, a firm known for backing high-growth ventures in sustainable sectors, signals a vote of confidence in Tide’s mission to empower small businesses amid economic uncertainty. As noted in a Livemint report, this investment aligns with TPG’s Rise Fund focus on impact-driven companies, particularly those fostering financial inclusion in developing economies. Tide’s tools have enabled Indian small businesses to access credit faster, with AI algorithms reducing approval times from weeks to hours.

Looking ahead, Tide plans to use the fresh capital to deepen its Indian footprint, potentially expanding into new services like insurance and payroll. With India’s small business sector projected to grow amid government initiatives like Digital India, Tide’s model could inspire similar cross-border fintech plays. However, sustaining this momentum will require navigating geopolitical tensions and economic volatility.

Implications for Global Fintech

For industry insiders, Tide’s unicorn milestone highlights the shifting dynamics of fintech investment, where emerging markets like India are no longer peripherals but core drivers. As Yahoo Finance echoed in its analysis, Tide’s success story underscores how targeted innovation can turn local challenges into global opportunities. While the company eyes profitability by 2026, its journey from a U.K. startup to an India-fueled unicorn serves as a blueprint for ambitious fintechs worldwide, blending technology with grassroots economic needs.