Allica Bank is officially a unicorn. The small business challenger bank has secured $155m (£111m) in a Series D round, pushing its valuation past the $1.2bn mark and straight into the UK fintech elite. Think Monzo, Revolut, Starling. Allica’s now in that company. For a bank laser-focused on SME lending, it’s a pretty big deal, especially in a market the big banks quietly abandoned.
From “Barren Wasteland” to Billion-Dollar Bank
Not long ago, small business lending was, in the words of Allica CEO Richard Davies, “a barren wasteland.” The major banks pulled back. The gap widened. And challengers like Allica quietly filled it.
That strategic focus is paying off. Challenger banks now hold 60% of the SME lending market — a dramatic reversal from 2019, when the four largest banks alone accounted for 90% of lending. Allica has been one of the biggest beneficiaries of that shift.
What the Series D Actually Looks Like
The round included investment from Dubai-based Ventura Capital — the same firm with stakes in Uber, Spotify, and UK fintech favourite Zilch. It’s a step up from Allica’s £100m Series C in December 2022, and follows a record year: 86% growth in pre-tax profit to £29.9m, with lending activity crossing £1bn.
Davies had flagged unicorn status was on the cards. He wasn’t wrong.
Acquisitions, Ambition, and the £1bn Working Capital Target
Allica hasn’t just been raising money, it’s been spending it strategically. In October, the bank acquired London-based fintech Kriya, which specialises in embedded finance and business loans. Kriya posted £12.6m in revenue in 2024 (down from £16.9m the prior year), with pre-tax losses narrowing to £9m from £11.5m.
It’s Allica’s third acquisition, following the integration of Allied Irish Bank’s SME portfolio and the purchase of bridging finance specialist Tuscan Capital in 2024.
The goal? £1bn in working capital finance — short-term funding like loans and credit lines — over the next three years. The Kriya deal plugs neatly into that ambition.
What This Means for UK Fintech
The UK fintech scene has had a rough couple of years. Valuations compressed. Funding dried up. So Allica landing a nine-figure raise at a unicorn valuation is a genuine signal that investor appetite for profitable, focused fintechs is back.
Allica isn’t chasing retail customers or going viral on TikTok. It’s doing the unsexy work of keeping small businesses funded — and it turns out that’s a very good business.
The Bottom Line
Allica Bank’s unicorn milestone isn’t just a vanity metric. It reflects a real market shift, a profitable model, and a clear growth roadmap. With £111m in fresh capital, three acquisitions under its belt, and a £1bn working capital target in its sights, Allica looks like one of the more credible growth stories in UK fintech right now. Worth watching..
FAQ
Q1: What is Allica Bank?
A: Allica Bank is a UK challenger bank focused exclusively on small and medium-sized businesses (SMEs). It offers lending, savings, and working capital products.
Q2: What does unicorn status mean?
A: A unicorn is a privately held startup valued at over $1bn. Allica joins a small group of UK fintechs — including Monzo, Revolut, and Starling — to reach this milestone.
Q3: Who invested in Allica’s Series D?
A: The round included Dubai-based Ventura Capital, which also holds stakes in Uber, Spotify, and UK fintech favourite Zilch. The raise totals $155m (£111m).
Q4: What is working capital finance?
A: Working capital finance covers short-term funding — like loans and credit lines — that helps businesses manage day-to-day cash flow. Allica is targeting £1bn in this category over the next three years.
Q5: Why did Allica acquire Kriya?
A: Kriya specialises in embedded finance and business loans, making it a strategic fit for Allica’s working capital push. It’s the bank’s third acquisition in recent years.
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Effective Date: 15th July 2025
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