London’s Allica Bank targets 10% UK SMB market share by 2028 after €131 million raise

Allica Bank, a digital bank specifically catering to UK small and medium-sized businesses (SMBs), has successfully closed a significant €131 million ($155 million) Series D funding round. This substantial capital injection, backed by investors including Ventura Capital and existing shareholders TCV and Blue Owl, propels the FinTech valuation close to €1 billion ($1.2 billion). The funding underscores Allica's ambition to capture 10% of the UK SMB market by 2028 and signifies a strong vote of confidence in its proprietary technology and strategic direction. The investment will fuel Allica's continued lending growth and enhance its full-stack technology, with a particular focus on leveraging Artificial Intelligence (AI) for innovative lending solutions. Furthermore, this capital infusion will support Allica's strategic expansion into international markets, marking its first foray beyond its UK home base. The bank aims to offer established businesses, often overlooked by larger institutions, a personalized and value-driven banking experience, including relationship managers and advanced technology tools. Allica Bank's substantial funding round is situated within a broader European FinTech landscape that is witnessing robust investment. Neighboring FinTechs like Netherlands-based Duna, which raised €30 million for compliant AI in business identity, and UK-based Bound, securing €20.7 million for risk management and regulatory approval, highlight a trend towards foundational financial technology and compliance tools. Similarly, London's Sokin received an additional €83 million for its payments platform, and Warsaw's Wealthon secured €126 million for an SME financial services ecosystem, collectively demonstrating significant capital flow into diverse areas of digital finance supporting businesses.