Allica Bank, the leading fintech SME challenger bank, has announced a £100 million Series C funding round led by global growth technology investor, TCV, with participation from existing investors Warwick Capital Partners and Atalaya Capital Management.

Allica now joins TCV’s strong portfolio of businesses, which also includes household names like Airbnb, Netflix, and Spotify as well as fintechs that have revolutionized their respective industries including Brex, Mambu, Mollie, Nubank, Qonto, Razorpay, Revolut, Toast, Trade Republic, and Zepz.

With this fresh financing, Allica is now able to develop quickly and heighten its disruptive influence on the UK SME sector, building on the bank’s exceptional growth and its achievement of profitability in June of this year.

The only digitally native challenger bank in the UK, Allica is dedicated to offering established SMEs and business owners a full range of banking services, including loans, savings, and payments.

These established SME businesses typically have between 10 and 250 employees and makeup around a third of the UK economy – but are instead noticed by both big banks and other fintech companies. focus on consumers and micro businesses.

Allica has generated exceptional momentum in the three years since obtaining its banking license, ensuring continued growth and demonstrating its potential to transform the UK’s traditional SME banking market over the next decade:

• Spring 2022 – Allica was named Best Business Finance Provider at the British Bank Awards
• Summer 2022 – Allica reached £1bn of lending and monthly profitability, and successfully completed the migration of c. 2,000 SME customers acquired from AIB GB
• Autumn 2022 – Allica successfully launched its best-in-class Business Rewards Current Account, a current account designed especially for established businesses, with no monthly fees and great cashback offerings, fulfilling its commitment to be a full-service challenger bank

Allica delivers outstanding financial performance, demonstrating that their proprietary digital banking model is sustainable and highly scalable; Allica has been profitable in less than three years, and third-quarter 2022 revenue is up 743% year-over-year compared to 2021.

In November, Allica was named Commercial Bank of the Year at the annual NACFB awards – one of five categories the bank has won at one of the UK’s leading SME finance awards.

“From the moment we sat down with TCV it was clear we shared the same vision to transform SME banking in the UK, by taking on the mainstream ‘high street’ banking market”

“It’s a massive vote of confidence in the team we’ve built at Allica to attract backing from such a world-class technology investor under the toughest of market conditions, and this £100 million funding round will enable us to support far more of Britain’s established and growth companies, who have been underserved for too long.”

Richard Davies, Chief Executive of Allica Bank and former executive at HSBC and Revolut.

“Richard and team have built a truly impressive platform that is looking to solve a great need for UK-established SMEs, a highly complex segment to serve. TCV is laser-focused on partnering with market-leading companies seeking to leverage technology to transform industries. Allica is a prime example of this and we’re incredibly excited to collaborate with this strong team as they work to be the country’s leading digitally-native SME bank.”

                                                                                  Michael Kalfayan, Partner at TCV.

“We worked closely with Richard during his time at Revolut and are delighted to partner with him again to support Allica on this journey.”

                                                          John Doran, General Partner at TCV.