Tide seeks £60m funding following RBS grant
As reported last month, the banks got the funding from the RBS Alternative Remedies Package, a government-backed competition. (Metro Bank also won £120 million and challenger Starling Bank was awarded £100 million.)
In the latest chapter, Tide is looking for more investment and says it has received interest from 70 venture capital funds, in addition to its current backers. These include Anthemis, Augmentum, Creandum, Goodwater, LocalGlobe, Passion Capital and SpeedInvest.
Tide, which targets SME banking, is aiming to capture at least 8% of the SME market by 2023. It says it currently sits at around 70,000 customers, roughly 1.2% of the market.
“This new investment plan will help Tide accelerate its strategy to capture a significant share of the SME banking market,” says Tide CEO Oliver Prill.
He adds: “We want to create a genuine scale challenger to the oligopoly that has dominated and failed SMEs for too long. SMEs should have the option of a dedicated and focused banking partner that will help them grow their business.”
Tide currently does not have a banking licence, but is aided by ClearBank, the first clearing bank to launch in Britain for 250 years.
Tide says it is planning Series B and C investment rounds in the next two years.