UK business financial platform Tide has agreed to acquire SME payroll tool Onfolk for an undisclosed sum.

The company, which provides business accounts, banking services, and admin solutions for SMEs, will connect the new tool with its existing finance admin solutions, including invoice generation, payment services and expense cards.

Onfolk, which was founded in 2020 and backed by Silicon Valley's Y Combinator the following year, is an HMRC-recognised payroll software integrated with pension providers and accounting providers.

For payroll administrators and payees, it generates payslips with explanations for each item.

Other features include the automation of tax code notices and pension allocations, storage of payroll documents, with connectivity between payroll and accounting.

After the acquisition, Onfolk will be integrated into the Tide app and become Tide Payroll.

Tide, which was launched in 2017, currently has 650,000 UK business customers.

The company said the move, which follows its purchase of Funding Options in early 2023, will help the business diversify and drive member and revenue growth in the UK and internationally.

“Payroll is a significant part of running any successful small business and we want to help our members simplify that process," said Oliver Prill, chief executive, Tide. "Once again, Tide is making an admin heavy process simple for small business owners by connecting it seamlessly with the myriad of disjointed finance and admin tasks."

The Tide boss added that M&A is a key part of the firm's growth strategy.

---