UK Challenger Bank Allica Secures £110M in Series B Fundraise

​Allica Bank (Allica), the London-based Challenger bank focused on small and medium enterprises (SMEs), has closed £110m Series B funding round, led by new investor Atalaya Capital, with participation from the existing lead investor Warwick Capital Partners, who remains its largest shareholder.

The new fund, composed of £102.5m equity capital and £7.5m of tier 2 debt capital, marks the next step in the company’s mission to take on the mainstream ‘high street’ banking market and become the go-to bank for established, growing SMEs.

The new round follows Allica’s acquisition of £600m assets from Irish AIB, which is expected to boost its revenues in order to turn a profit by mid-way through 2021. Allica secured its full bank license in September 2019.

“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 SMEs are looking for more tailored support from their bank,” said Richard Davies, CEO of Allica.