Tide , a UK-based business financial platform, has announced its acquisition of Onfolk , a payroll solution for small and medium-sized enterprises (SMEs) in the UK. Onfolk integrates with accounting, pension, and human resources systems.

This acquisition improves Tide's administrative offerings for small businesses, further consolidating its position in the market. Currently, around 11% of UK small businesses use the Tide app. Following the acquisition, Onfolk will be integrated into Tide's platform and rebranded as Tide Payroll.

Tide Payroll will integrate with Tide’s existing financial and administrative services, such as invoice generation, payment processing, and expense management. This will allow the platform’s 650,000 UK customers to manage multiple business tasks within a single app. Onfolk’s payroll features include the generation of payslips, automated tax code updates, pension allocations, document storage, and integration between payroll and accounting systems.

Existing Onfolk customers will retain access to the platform. As part of the deal, the Onfolk team will join Tide and lead the development of Tide Payroll. Onfolk, founded in 2020, received backing from Y Combinator in 2021.

This acquisition follows Tide’s earlier purchase of Funding Options in 2023 and aligns with the company’s strategy to diversify and drive growth both in the UK and internationally. Global expansion: Tide is targeting India and Germany to lead SME financial services Tide’s expansion into Germany and India underscores its global ambitions in the SME banking and financial services sector. In India, where the platform launched in December 2022, Tide is targeting the country’s vast and underserved small business market, which plays a crucial role in the economy.

With 350,000 members in India, Tide is focusing on providing digital financial services tailored to the unique needs of Indian SMEs, offering features such as business accounts, payment services, and administrative tools. This move aligns with India’s broader push toward digitalisation, especially among SMEs, and positions Tide as a key player in modernising the country’s SME financial ecosystem. In Germany, where Tide entered in May 2024, the company is gradually rolling out its product offerings, focusing on simplifying administrative and financial processes for small businesses.

Germany’s SME sector, known as the Mittelstand, is the backbone of its economy, and Tide is aiming to differentiate itself from local competitors by providing a comprehensive, app-based platform that integrates financial services with admin tasks. By offering a simple, all-in-one solution, Tide seeks to attract SMEs looking for efficient alternatives to traditional banks and local fintechs. This strategic expansion into two key markets reflects Tide’s broader goal of becoming a global leader in SME financial services.

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