Tide Expands SME Services with Acquisition of Onfolk

UK-based business banking platform Tide has announced the acquisition of Onfolk, a London-based payroll solutions provider specializing in small and medium-sized enterprises (SMEs). The deal, for an undisclosed sum, represents Tide's latest move to enhance its suite of financial services, underscoring its ambition to become a one-stop solution for business banking and administrative needs.

Founded in 2020, Onfolk offers a fully HMRC-recognized payroll software that automates core payroll processes for SMEs, including tax code updates, payslip generation, and secure documentation storage. With the acquisition, Tide will integrate Onfolk’s technology directly into its app under the new ‘Tide Payroll’ feature. This integration will allow Tide users to access payroll management alongside Tide’s existing finance and admin tools, streamlining operations for SMEs that rely on Tide for their business needs. The Onfolk team will also join Tide, leading the new payroll division to oversee product development and integration.

Current Onfolk customers will continue using the platform as they transition to Tide Payroll, ensuring uninterrupted service. This acquisition follows Tide’s purchase of Funding Options in early 2023, a marketplace for SME financing, marking its second acquisition in just over a year as the company works to deepen its service portfolio.

Tide, which serves over one million users globally, has become a significant player in the UK SME market, claiming that more than 10% of the country’s small businesses use its platform. The acquisition reflects Tide’s larger strategy to grow through both organic expansion and targeted acquisitions, enhancing its capacity to meet SME needs with a full range of finance and administrative solutions.

Under the leadership of George Schmidt, Tide’s recently appointed CEO for the UK and Europe, the company is also advancing its international expansion. Schmidt, who assumed his role in March, has overseen Tide’s recent entry into the German market, where the company began rolling out its SME banking services in May as part of its European expansion strategy.

With Onfolk now part of its ecosystem, Tide is positioned to solidify its standing as a comprehensive service provider for SMEs, offering integrated payroll, financing, invoicing, and expense management tools. This acquisition reinforces Tide’s commitment to supporting small businesses with streamlined, tech-driven solutions, setting a strong foundation for its continued growth in the UK and beyond.