Allica Bank, a London-based fintech SME challenger bank, has announced a £100m Series C funding round led by global growth technology investor, TCV, with participation from existing investors Warwick Capital Partners and Atalaya Capital Management.
With this investment, Allica joins TCV’s list of portfolio companies, including household names like Airbnb, Netflix and Spotify, as well as “category-defining” fintechs such as Brex, Mambu, Mollie, Nubank, Qonto, Razorpay, Revolut, Toast, Commercial Republic and Zepz.
This new investment allows Allica to scale rapidly and accelerate its disruptive impact on the UK SME market, following the bank’s “impressive” growth, as well as its profitability target, achieved in June this year .
Allica is the UK’s only digital challenger bank committed to providing a full-service banking relationship to SMEs and established entrepreneurs, offering them loans, savings and payments.
These established SMEs typically have between 10 and 250 employees and account for around a third of the UK economy, but are overlooked by both big banks and other fintechs which focus instead on consumers and micro businesses.
Allica claims to deliver “outstanding” financial performance, proving that its proprietary, digital-native banking model can be “sustainable and highly scalable”. Allica achieved profitability in less than three years and third quarter 2022 revenue is up 743% year-on-year compared to 2021.
Richard Davies, Managing Director of Allica Bank and former Managing Director of HSBC and Revolut, commented: “From the moment we sat down with TCV, it was clear that we shared the same vision to transform SME banking. in the UK, supporting the mainstream “high street banking market”
“It’s a massive vote of confidence in the team we’ve built at Allica to attract the backing of a world-class technology investor in the most challenging market conditions, and this £100m funding round. sterling will allow us to support many more established UK businesses and growing businesses, which have been underserved for too long.
Michael Kalfayan, Partner at TCV, added: “Richard and his team have built a truly impressive platform that seeks to address a great need for UK-based SMEs, a very complex segment to serve.
“TCV is focused on partnering with market-leading companies looking to leverage technology to transform industries. Allica is a great example of this and we are extremely excited to partner with this strong team as they strive to be the first digitally native SME bank in the country.
By Matthew Neville – Correspondent, Bdaily
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