Tide’s goal is to end the administrative headache many entrepreneurs experience, with a view to make business ownership easier. The two new investors join Passion Capital, LocalGlobe and angels, which have thus far provided the SME banking app with a $2m seed investment.
The investors have been impressed with Tide’s rapid deployment of business accounts through its SME banking app, which can unlock a current account for a customer within five minutes.
In addition to banking and payment functionality, the SME banking app can also support invoicing and bookkeeping – in keeping with its fight against administrative headaches.
The business will use the $14m to support recruitment at its London HQ, while the capital will also allow the SME banking app to enhance its features and provide faster access to, and management of, funds for users.
“Our investors believe there is a real opportunity to support and champion small and medium-sized companies in the wake of Brexit,” said George Bevis, Tide founder and CEO.
“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.
“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.”
Tide has also revealed a partnership with online lender iwoca, which will offer members of the SME banking app an opportunity to secure loans of up to £100,000 from this summer. Like Tide, iwoca believes that speed is essential.
Christoph Rieche, CEO and co-founder of iwoca, added: “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.”