Allica Bank, a challenger lender that works with SMEs, has been crowned as the UK’s latest fintech unicorn after a new $155m (£114.7m) Series D round valued it at $1.2bn.
First launched in its current state in 2019, London-headquartered Allica Bank currently works with more than 30,000 SMEs across the UK, representing as much as 5% of its target market, which it aims to double by 2028.
Now backed by a major new capital injection, Allica said it would expand its lending business and invest heavily in its proprietary tech platform, with plans to apply AI to credit decision-making.
Allica also plans to expand internationally following its latest investment.
“We’re building the category defining digital bank for established SMBs, and are excited to be taking our proprietary platform into new markets,” said Allica chief executive Richard Davies.
“This Series D investment is a major vote of confidence in Allica’s strategy and performance.”
The investment round was led by Ventura Capital, which was joined by GLG, Sona AM, TCV and Blue Owl.
“Allica is a world class business that is executing exceptionally well in a large, underserved market,” said Ventura Capital partner Mo El Husseiny.
“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.”