UK challenger Allica Bank completes £110m Series B funding round

UK challenger Allica Bank has secured £110 million in a Series B funding round.

Allica’s investment to date now stands at £233 million

The round, led by new investor Atalaya Capital Management and existing lead investor Warwick Capital Partners, will support the recent acquisition of 2,000 SME customers and £600 million of associated lending from AIB Group.

The deal is expected to bring forward the bank’s target profitability date to the middle of 2022 and will give the challenger a total combined lending book of over £1 billion.

The new cash injection will also go towards continued investment in Allica’s proprietary technology and client support.

The bank’s total raised to date now stands at £233 million, which makes Allica one of the UK’s top 20 fintechs by funds raised, according to Beauhurst, a UK high-growth company tracker.

Allica Bank CEO Richard Davies says: “This £110 million funding round, alongside the acquisition from AIB, will enable us to support and scale even more of Britain’s established SMEs and growth companies, at a time when SMEs are looking for more tailored support from their bank.”

Allica Bank received full banking authorisation in September 2019 and opened its doors to SME lending in March 2020. It reaches SMEs via direct relationships and a broker channel.