UK-based Tide to invest ₹3,100 crore in India over next four years

UK-based business financial platform Tide is planning to invest approximately 250 million pounds, which is ₹3,100 crore, in India by the end of the coming year 2030, with the aim of scaling up the operations and technology centers that support its global business. According to a Business Standard report, the company is also considering increasing this investment up to 500 million pounds in the long term.

The company stated in a release that India will remain an important part of its global operations. The main objective of the investment is to strengthen the operation and technology centers supporting its businesses in the UK and Europe. Currently, about 800 employees are working for functions like member support, product, and engineering at the company's Center of Excellence in Hyderabad. This center in Hyderabad represents nearly one-third of the company's total workforce and manages the core operations, engineering, and product innovation of the company. In addition, the company also wants to advance its operation center in Delhi, which supports its UK and European businesses.

However, the company has also taken an important strategic decision. After a detailed strategic review, Tide has concluded that the economics of its member-facing business in India do not show a path to sustainable profitability, although the number of its members in the country has crossed 1 million since December 2022. Therefore, the company will now focus on the UK and European markets, where it sees greater potential for large-scale profitable growth. This decision to shut down the India-based member-facing business will affect approximately 400 employees. The company has stated that it will support the affected employees during this transition, which includes relocating them to its global operation and technology centers wherever possible. The company will also directly communicate the impacts of this decision with its members in India.

According to Tide's Chief Executive Officer Oliver Prill, India is an integral part of the company's global business and long-term growth plans. He added in the statement that the company has built a significant operation and technology presence in India and wants to continue expanding these capabilities. According to Prill, the decision to exit the member-facing business was taken after a strategic review, which found that the economics of this proposition, especially compared to the opportunities available in the UK and Europe, do not provide sustainable profitability. The company expects its annual run rate of revenue to exceed 500 million US dollars in the coming months. The UK is the largest and established market for the company, where it is profitable and reaching nearly 1 million small and medium-sized enterprise (SME) members, which equals about 16 percent of the market. The company also plans to use artificial intelligence to improve efficiency and provide better support to members.

Tide is a business financial platform that provides financial services to small and medium-sized enterprises.