SME challenger bank Allica Bank has raised £110 million in a Series B funding round led by new investor Atalaya Capital Management, alongside existing lead investor Warwick Capital Partners.
The proceeds will be used to support the bank’s investment in technology as it continues to scale, and will also provide the capital to support the acquisition of AIB’s SME lending portfolio, which was announced earlier this week.
The portion of Atalaya Capital Management’s investment that is over 10% of Allica’s equity base is subject to regulatory approval.
Richard Davies, CEO 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.”
He added: “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.”
The latest funding round brings total investment in Allica to date to £233 million.
Ian Burgess, managing partner of Warwick Capital, Allica Bank’s majority shareholder, said: “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 award-winning proposition for Britain’s underserved SMEs.”