Allica Bank secures $155m Series D for growth push

Allica Bank, the digital bank focused on small and medium-sized businesses (SMBs), has raised $155 million in a Series D funding round to accelerate its growth in the UK, deepen investment in its technology platform and begin expanding into international markets.

The round was led by Ventura Capital, GLG and Sona AM, with participation from existing investors TCV and Blue Owl. The majority of the funding is in common equity, alongside a portion of new additional Tier 1 capital. The raise values Allica at close to $1.2 billion.

Allica has established itself as a category-defining digital bank for established SMBs – typically businesses with between five and 250 employees – offering a full-stack banking and lending platform built on proprietary technology. The latest funding comes after a period of rapid growth, with the company named the fastest-growing technology company in the UK by Deloitte in both 2023 and 2024, the fastest-growing private company in the UK in 2024 by The Sunday Times, and the second fastest-growing company of any kind in Europe by the Financial Times in 2025.

The new capital will support continued expansion of Allica’s lending book, increased investment in its technology stack, and the use of AI to enhance lending and servicing for established SMBs. It will also fund the bank’s first move beyond its UK home market.

Richard Davies, CEO of Allica, said: “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,” he added.

Over the past five years, Allica has grown its balance sheet to nearly £4 billion of SMB loans and more than £5 billion of deposits. In 2023, it launched its award-winning Business Rewards Account. The bank now serves more than 30,000 established SMBs across the UK – around 5% of its target market – and is targeting 10% market penetration by 2028.

Lucy Rigby, City Minister and Economic Secretary to the Treasury, said: “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.”

Mo El Husseiny, Managing Partner at Ventura Capital, said: “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, said Allica’s “proprietary full-stack technology is world-class and provides a truly differentiated edge in SMB banking.”

Michael Kalfayan, General Partner at TCV, added: “Allica solves what customers have long been asking for – speed, reliability and trust. 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.”