Allica Bank’s Ambitious Goal: Capturing 10% of the UK SMB Market by 2028 with €131 Million Funding

Allica Bank Raises €131 Million in Series D Funding

Allica Bank, a leading British digital bank catering to small and medium-sized businesses (SMBs), has successfully completed a €131 million ($155 million) Series D capital raise. The goal of this funding round is to achieve a 10% market penetration in the UK by 2028. This significant investment demonstrates the confidence of investors in Allica Bank’s unique approach to serving the SMB market.

The Series D funding round saw participation from Ventura Capital, GLG, Sona AM, as well as existing investors TCV and Blue Owl. The majority of the funding comprises common equity, with a portion allocated to new additional Tier 1 equity capital. This round values Allica Bank at close to €1 billion ($1.2 billion), highlighting its growing presence and market potential.

Richard Davies, CEO of Allica, expressed his enthusiasm for the future, stating, “We’re building the category-defining digital bank for established SMBs and are excited to expand our proprietary platform into new markets. This Series D investment is a testament to Allica’s strategic vision and performance.”

Allica Bank, founded in 2019, specifically caters to established businesses with 5 to 250 employees. Recognizing the importance of these businesses to the UK economy, Allica aims to provide personalized, convenient, and value-driven banking services that are often lacking from traditional banks.

The bank’s mission is to offer established businesses the banking experience they deserve, including a current account that rewards usage, dedicated relationship managers, and advanced tools and technology to simplify financial management.

Expanding Financial Solutions for Established SMBs

• Allica’s Series D funding will support the bank’s continued lending growth and further investment in its proprietary technology stack, including leveraging AI to enhance lending opportunities for SMBs.
• The bank plans to expand beyond the UK market for the first time, aiming to bring its innovative banking solutions to a broader European audience.

John Doran, General Partner at TCV, praised Allica’s technology prowess, stating, “Allica’s proprietary full-stack technology provides a distinct advantage in SMB banking.”

Over the past five years, Allica has grown its balance sheet to nearly €4.5 billion in SMB loans and over €5.7 billion in deposits. The bank currently serves over 30,000 established SMBs in the UK, representing approximately 5% of its target market, with a goal of reaching 10% market penetration by 2028.

Michael Kalfayan, General Partner at TCV, highlighted Allica’s commitment to customer satisfaction and innovation, noting the bank’s outstanding performance in recent years. He emphasized the potential for Allica to lead the way in applying AI to enhance financial services and improve SMB banking across Europe.

Continued Growth and Innovation

Allica Bank’s Series D funding marks a significant milestone in the bank’s journey to revolutionize banking for established SMBs. With a focus on technology, customer service, and market expansion, Allica is poised to redefine the banking experience for businesses across Europe.

As the financial landscape continues to evolve, Allica’s dedication to providing tailored solutions and exceptional service sets it apart as a leader in the FinTech industry. The bank’s strategic vision and commitment to innovation position it for continued success in the competitive European market.