The bank is approaching its target of profitability in 2022.
As the economic conditions continue to deteriorate and many fintechs consider layoffs to extend their cash, Allica Bank has secured a £55m funding round which it says will secure its future growth.
The capital is split between a £25m equity funding round from existing investors Warwick Capital Partners and Atalaya Capital Management, and a £30m Tier 2 credit line from British Business Investments (an arm of the British Business Bank).
Allica Bank last raised funding in November 2021, with its £110m Series B led by Warwick Capital and Atalaya Capital, but says the new capital will give it a “strong basis on which the bank can continue to take on the mainstream ‘high street’ banking market”.
With £30m from British Business Investments, Allica says this funding will help it support an additional £250m of lending to UK SMEs.
“The new facility from British Business Investments alongside further equity from our existing lead investors will enable Allica Bank to support and scale even more of Britain’s established SMEs and growth companies at a time when SMEs are looking for more tailored support from their bank,” said Allica’s CEO Richard Davies.
“Allica is fast becoming the SME challenger bank of choice through combining our proprietary technology with experienced local relationship managers to provide great customer experience.”
Davies reaffirmed Allica’s commitment to profitability in 2022, with a forecast that the bank will complete an additional £3bn of lending in the next three years.
“Looking ahead, we are hugely excited about our plans to develop Allica’s customer proposition as we continue our mission to reimagine relationship banking for SMEs.”