The new £110m funding round will support continued investment in Allica’s proprietary technology and relationship management experience.
Allica Bank has signed a £110m Series B funding round, led by Atalaya Capital Management, alongside existing lead investor Warwick Capital Partners.
Allica Bank's funding round will support continued investment in Allica’s proprietary technology and relationship management experience, alongside providing the capital to support the acquisition of AIB’s small to medium enterprise (SME) lending portfolio.
Following full completion of the AIB transaction in 2022, Allica Bank expects to have a combined total lending book of over £1bn and to be profitable on a monthly basis.
The expansion of Allica’s proposition and direct lending offer will leverage the bank’s distinctive network of local relationship managers and expanding product suite, including the launch of its new Business Rewards Account in early 2022.
The portion of Atalaya Capital Management’s investment that is over 10% of Allica’s equity base, is subject to regulatory approval.
Investment to date in Allica Bank now amounts to £233m.
Richard Davies, chief executive of 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.
"We are fast becoming the SME lender of choice with our powerful mix of proprietary technology and experienced local relationship managers.
“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.
“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."
Ian Burgess, managing partner of 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 Allica’s awardwinning proposition for Britain’s underserved SMEs."