Allica Bank signs £110m funding round

Allica Bank has announced a £110m Series B funding round led by Atalaya Capital Management, alongside its existing lead investor, Warwick Capital Partners.

The funding will be invested in Allica’s technology and relationship management experience, as well as provide capital to support the acquisition of AIB’s SME lending portfolio and the bank’s organic growth.

The overall investment in the bank has now reached £233m.

Over the past 12 months, Allica has delivered more than £500m in committed loan offers to customers.

Following full completion of the AIB transaction in 2022, the lender expects to have a combined total lending book of over £1bn and to be profitable on a monthly basis.

Richard Davies, CEO at Allica Bank, said: “While most digital and challenger banks are focused on specialist lending markets or secondary payment accounts, this transaction demonstrates how Allica is leading the charge in taking on the mainstream high-street banking market for established, growing SMEs. 

“This £110m 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 they are looking for more tailored support from their bank.

“We’re laser focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK.” 

Justin Burns, managing director at Atalaya Capital Management, commented: “We are thrilled to support the next growth phase of Allica in its mission to empower SMEs to succeed.”  

Ian Burgess, managing partner at Warwick Capital, added: “We are excited to continue our support of Allica and the bank’s transformational acquisition of AIB’s SME portfolio. 

“Allica has been building impressive momentum since its full launch last year, and this acquisition will build on and accelerate the development of its proposition for Britain’s underserved SMEs.”

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