Having participation from existing investors of the likes of Warwick Capital Partners and Atalaya Capital Management, this raised capital is aimed at enabling Allica Bank’s rapid scalability and the acceleration of its disruptive impact in the UK SME market, following its growth and profitability milestone achievement, as per information offered in the company’s press release.
Following this investment, the company joins TCV’s portfolio of companies that includes organisations of the likes of Airbnb, Netflix, and Spotify, as well as fintechs such as Brex, Mambu, Mollie, Nubank, Qonto, Razorpay, Revolut, Toast, Trade Republic, and Zepz.
Allica Bank offering and further funding details
A digitally native challenger bank, Allica has the mission of providing a full-service banking relationship to established SMEs and entrepreneurs, its offering including services related to lending, savings, and payments. As stated in the announcement, established SME businesses typically have between 10 and 250 employees, representing approximately a third of the UK’s economy. However, despite this, they are neglected by both mainstream high street banks and other fintech, who are targeting consumers and micro-businesses.
Having been granted its banking licence in September 2019, the company is looking to deliver continuous growth and transform the traditional SME banking market in the UK within the next decade. Having improved financial performance delivery in mind, Allica Bank aims to do so through its proprietary and digitally native banking model in a sustainable and highly scalable manner.
Speaking on the announcement of the funding, Allica Bank officials have stated that the raised capital will enable the company to support an increased number of UK-based established and growth companies that have been underserved. A TCV spokesperson has advised that Allica Bank’s platform for UK-established SMEs is looking to solve the needs of a segment that is complex to serve, and with TCV being focused on partnering with companies that leverage technology to transform industries, the collaboration is set on furthering the bank’s mission in becoming a leading digitally native SME bank in the region. Furthermore, Perella Weinberg Partners, an independent investment banking firm, acted as Allica’s exclusive financial advisor.
As per information provided in the press release, Allica Bank launched in 2022 a Business Rewards Current Account targeting established businesses, a current account with no monthly fees and cashback offerings looking to fulfil its commitment in being a full-service challenger bank, following the securement of a GBP 110 million Series B funding in November 2021.
