Digital challenger bank for small business, Tide, has landed $14m from fintech investors and an early Spotify backer

Another of the new crop of digital challenger banks has landed fresh funding as investors continue to flock to fintech.

Tide, aimed at small businesses and letting them open a current account using just their iPhone within five minutes, has raised $14m (£11m) in a series A round from new and existing investors.

Anthemis led the round with Swedish venture capital fund Creandum, an early backer of Spotify, alongside previous investors Passion Capital and LocalGlobe.

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Tide launched to the public in January and the startup is planning to expand with new features such as multiple currency options and access for more than one user. It already offers features beyond an account such as automated book keeping, and expenses and invoices management.

It will also use the cash to grow its team of 35 in London to nearly double that by the end of the year and marketing. “We’re growing extremely fast but we still need to get the word out,” said Founder George Bevis.

It is also unveiling a partnership with fellow fintech firm Iwoca to offer users business loans of up to £100,000, the latest example of a growing trend in tie-ups between fintechs.

Bevis, a former banker who was also product director at peer-to-peer lender Zopa, is eyeing up the gap left by traditional banks when it comes to serving small business with Tide.

“Britain’s smaller firms have been let down by traditional banks, which often charge vulnerable companies eye-watering fees and keep them waiting weeks to open a business account,” he said.

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“Our investors believe there is a real opportunity to support and champion small and medium-sized companies in the wake of Brexit.”

The fresh cash adds to a $2m seed stage round of capital, with several well known entrepreneurs on board: Zoopla founder Alex Chesterman, Wona founder Errol Damelin, LoveFilm co-founder William Reeve, Songkick founder Ian Hogarth and One Fine Stay founder Greg Marsh. And it brings Tide’s total funding to $17m.