Tide, a UK-based mobile-first SME banking service, has raised $14m in one of the largest Series A investment rounds closed by a fintech company this year.
Founded by former RBS/Worldpay head of innovation George Bevis, Tide launched in Janaury after raising more than $2m in funding in 2016.
The business - which has fintech czar and Passion Capital partner Eileen Burbidge as chairman - enables users to set up a fully functioning business account in a matter of minutes using their passport or driving licence.
Alongside banking and payment facilities, Tide provides invoicing and bookkeeping services which aim to ease the administrative burdens faced by small companies.
The new round has been led by Anthemis, alongside Creandum, the Scandinavian fund that has backed Spotify and iZettle and earlier investors Passion Capital and Local Global.
Bevis says the cash will be used to expand Tide's workforce at its central London headquarters and create new services, including multi-user access to accounts and service availability in multiple currencies.
“Our investors believe there is a real opportunity to support and champion small and medium-sized companies in the wake of Brexit. Britain’s smaller firms have been let down by traditional banks, which often charge vulnerable companies eye-watering fees and keep them waiting weeks to open a business account," he says. "By providing our members an instant, transparent business credit facility, which for some was difficult to obtain on the high-street, we’re also making it easier for small and medium-sized companies to get the finance they need to grow.”
In an example of the rebundling of banking services by innovative startups, the fundraising coincides with the announcement of a partnership with online lender iwoca, which will offer Tide customers loans of up to £100,000 from later this summer. Iwoca’s risk engine makes instant lending decisions based on complex data sets.
Christoph Rieche, CEO and co-founder of iwoca, comments: “Iwoca’s innovative tie-up with Tide will enable small businesses to access finance without ever having to leave the Tide app, making the process fast, simple and hassle-free. Tide have built the integration on top of iwoca’s new Lending API, an industry first solution which opens up our award-winning platform to partners allowing them to fund small businesses directly.”