Allica Bank has secured $155m in a Series D funding round as it looks to accelerate lending growth, deepen investment in technology and expand beyond the UK for the first time.
The digital bank for established small and medium-sized businesses (SMBs) said the raise includes a majority of common equity alongside a portion of new additional Tier 1 capital.
The round values the business at close to $1.2bn and follows a period of rapid expansion for the lender, which has scaled its balance sheet to nearly £4bn of SMB loans and more than £5bn of deposits over the past five years.
LENDING GROWTH
The fresh capital will support continued growth in lending and further development of the bank’s proprietary technology stack, including the application of AI across its operations.
The funding round was backed by Ventura Capital, GLG, Sona AM and existing investors TCV and Blue Owl.
Lucy Rigby, City Minister and Economic Secretary to the Treasury, says: “The UK is a fintech powerhouse and this Government is doubling down on measures that will enable the sector to grow.
“This government is helping to unlock investment into firms like Allica, supporting better finance for innovative British businesses, and showcasing UK financial services on the global stage.”
WORLD CLASS
Mo El Husseiny, managing partner of Ventura Capital, says: “Allica is a world class business that is executing exceptionally well in a large, underserved market. Ventura is proud to be a major investor in Allica’s Series D and we are raring to support this exceptional team’s next stage of growth into international markets.”
John Doran, general partner at TCV, adds: “Allica’s proprietary full-stack technology is world-class – and provides a truly differentiated edge in SMB banking.”
And Michael Kalfayan, general partner at TCV, says: “Allica solves what customers have long been asking for – speed, reliability and trust – reflected in its outstanding performance in recent years. Looking ahead, we see Allica as a frontrunner in applying AI across front and back office processes in financial services, and we are excited to support the team’s ambition to fundamentally improve SMB banking across Europe.”
VOTE OF CONFIDENCE
Richard Davies (main picture, inset), chief executive of Allica, says: “We’re building the category defining digital bank for established SMBs, and are excited to be taking our proprietary platform into new markets.
“This Series D investment is a major vote of confidence in Allica’s strategy and performance.”
