Allica Bank, a UK-based specialist business bank for SMEs with 5-250 employees, has raised $155 million in Series D funding. It delivers high-interest current accounts up to 4.08% AER variable on savings pots, cashback up to 1.5%, fee-free banking under conditions, dedicated relationship managers, and lending including overdrafts from £25k, asset finance to £1m, growth finance to £10m, and bridging loans. The capital targets accelerated UK expansion, technology enhancements, and international market entry.
Overdraft Launch Fills £15B Gap
Allica's timing aligns with its February overdraft product launch targeting a £15 billion SME overdraft shortfall for established businesses. Big banks overlook firms trading over 12 months with £50k+ balances, leaving flexible credit underserved. The bank also earned selection into a new UK Scale-up Unit for fast-growing fintechs just weeks prior. This positions Allica to capture demand from professional services, manufacturing, and care homes.
High-Street Banks Impersonal for SMEs
UK SMEs face impersonal service from legacy banks, with limited overdraft access despite proven stability. A £15 billion market gap exists for overdrafts suited to businesses with steady revenues. Current solutions lack competitive rates and relationship support, pushing SMEs toward costlier alternatives. Allica's model addresses this by prioritizing established firms over startups.
Proprietary Tech Meets Relationship Focus
Allica built proprietary technology tailored for SMEs, integrating current accounts with savings pots earning 4.08% AER and 1.5% cashback on spending. Dedicated managers provide personalized lending advice, from £25k overdrafts to £10m growth finance. Unlike volume-focused challengers, Allica emphasizes sectors like care homes and manufacturing. Recent October 2025 acquisition of Kriya fintech accelerates working capital offerings toward a £1 billion portfolio by 2028.
Series D Validates SME Banking Scale
The $155 million round arrives after Allica lent over £3 billion and gathered £4 billion in deposits from 25,000+ customers. This traction — UK's #1 fastest-growing private company per Sunday Times 100 2024 and top Deloitte Tech Fast 50 fintech — signals investor conviction in relationship-led digital banking. Funds enable tech upgrades to support 700+ employees and international push beyond UK SMEs.
£4B Deposits Mark Market Shift
Allica's £4 billion deposits reflect SMEs shifting from low-yield big bank accounts. Lending totals exceed £3 billion across commercial mortgages, asset, and bridging finance. Profits nearly doubled in 2024, with 'Excellent' Trustpilot scores. UK fintech growth favors specialists like Allica amid broader SME banking consolidation.
International Expansion Targets Set
Post-funding, Allica commences international operations while scaling UK presence via tech investments. Kriya integration aims for £1 billion working capital finance by 2028. Overdraft expansion and Scale-up Unit participation support 25,000+ customer growth trajectory.