Who are Tide India’s target customers, what is it offering them, what is its progress and what are its plans? Kumar Shekhar, Deputy Country Manager, Tide India reveals the answers:
Manoj Agrawal: What customer segments is Tide focusing on in India? When did it begin in India and what traction has the company achieved so far?
Kumar Shekhar: In UK, Tide has 11% market share, over 650,000 members which means 1 in 10 small businesses use Tide’s platform to meet their financial and admin needs. This approach saves them a lot of time and money. Buoyed by the confidence shown in our technology solutions and the lessons from the UK market, Tide entered India in December 2022, which is home to 64 million small businesses. Our vision is to bring similar convenience to Indian SMEs. We believe there is a vast untapped segment of small businesses in India. Indian SMEs are the backbone of its economy, providing vital services, jobs and growth. It is important to ensure that small businesses become a part of the formal economy with the requisite guardrails that protect them and offer an enabling environment to do business. Over the past two years, we have made significant strides in financial inclusion through a series of impactful initiatives. Here are a few.
Tide India launched MSME Exchange Program (MEP) – the first of its kind initiative in the MSME ecosystem, designed to glocalize entrepreneurship and foster bonds between small business owners from India and the UK. MEP will enable 16 smaller entrepreneurs from India and the UK to widen and sharpen their business knowledge, learn more about cross border trade and compliances and also learn from real life experiences of other entrepreneurs.
Tide India is emphasizing on boosting growth and financial inclusion in some of the secluded terrains, such as Northeast. We hosted Ekatritt, a conclave for small businesses across the region to give them a platform to voice their pain points, initiate dialogue on financial inclusion and create a network of enthusiastic entrepreneurs from the region. We signed a MoU with North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC) to foster financial inclusion for nearly 2.1 million handloom weavers and 3.5 million handicraft artisans across 800 clusters in North East India and provide them with greater market access.
Committed to empower 500,000 women-led small businesses in India by 2027, Tide partnered with We Hub and also launched Sarthika, a program to operationalize govt schemes for women MSMEs.
Tide India has committed to the establishment of Peer Community Groups – Tide Women in Business Ensemble (TWIBE) – to provide offline and online networking opportunities for women entrepreneurs. TWIBE aims at boosting support for women-led small businesses, which typically employ between 0-10 people.
We have successfully onboarded over 350,000 SMEs on the platform so far, indicating strong traction in the market. The member base is diverse in terms of location and profession, such as actors, bakers, beauticians, doctors, physiotherapists, teachers, business coaches, insurance brokers, and accountants, from tier 2, 3 and beyond cities reflecting the broad spectrum of SMEs in India. The primary customer segments include small business owners, freelancers, and solopreneurs, with a notable emphasis on the younger demographic. Approximately 70% of Tide’s members are aged between 18 and 30, predominantly comprising Gen Z and younger millennials. This demographic is particularly tech-savvy and eager to adopt digital financial solutions.
What are Tide’s main offerings? Do most customers opt for a single offering or multiple offerings?
Tide takes a member-first approach, focusing on removing the pain points for small businesses, starting with the Tide account and card. Tide is increasingly providing a range of products which are localized to SMEs in India. Members can anticipate features on the Tide app, including bank transfers, ATM withdrawals, bill payments and more.
Tide App is all-in-one business account facilitating receiving payments from any bank account, UPI, and QR code (coming soon), for all types of bills through Tide BillPay feature. The app also helps in segregating personal & business transactions and making seamless transactions to RuPay merchants. Tide Expense Card is India’s first recycled PVC RuPay card with zero commission fees, easy app-based management and functionality at all RuPay accepting merchants.
Tide is also planning to launch a credit marketplace platform for our members. They will help connect small businesses with the right set of lenders, streamlining the process of accessing credit and significantly reducing the time involved. This solution is designed to empower small businesses, offering them efficient and easy access to formal credit.
Which are the top 5 cities/towns in which Tide has customers? Which are the cities where Tide is actively pursuing customer acquisition?
In India, about 90% of Tide members are in semi-urban and rural areas, mainly from Uttar Pradesh, West Bengal, Madhya Pradesh, Maharashtra and Bihar, among others. We are actively pursuing customer acquisition in these regions, recognizing the potential for growth in underserved markets. Tide’s strategy includes localized marketing efforts and partnerships with local organizations/associations to enhance its outreach and support for SMEs, particularly in remote areas.
Which banks do you partner with and how does this benefit your customers? Who are your other key partners for various services?
In India, Tide has partnered with Transcorp, an RBI-licensed prepaid payment instrument issuer, to facilitate its financial services. This partnership is crucial for expanding access to financial products for SMEs. Tide’s UK model includes over 120 lenders, and while specific Indian partners for various services are still developing, the collaboration with Transcorp marks a significant step in establishing a robust operational framework in India.
Briefly describe the technology setup of the company and your key technology partners. How does the company safeguard its customers from fraud?
Tide employs a compliance-first approach, implementing full video KYC (Know Your Customer) from day one, which has proven effective in building trust and safeguarding customer data. This strategy has enabled the company to onboard members securely, ensuring that only legitimate businesses gain access to its services.
Briefly describe the employee base. From where have most of the people been recruited? What recruitments are planned for this financial year?
Tide’s Global Development Center (GDC) in Hyderabad is a cornerstone of its operations in India, housing over 1000 employees out of a global workforce of more than 1800. The center is focused on fostering top-tier engineering talent and promoting diversity. Tide plans to expand its employee base further, aiming to recruit additional staff across various roles to support its growth ambitions in the Indian market.
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