Allica Bank has raised $155 million in a Series D funding round, giving the UK-based digital bank unicorn status and valuing it at around $1.2 billion.

Investors in the round include Ventura Capital, GLG, Sona AM and existing backers TCV and Blue Owl. The majority of the funding consists of common equity, alongside a portion of new additional Tier 1 (AT1) capital.

Allica said the fresh capital will support continued lending growth and deeper investment in its proprietary technology stack, including the use of AI to broaden lending opportunities for established small and medium-sized businesses (SMBs). The bank will also use the funds to expand outside of its home UK market for the first time.

Over the past five years, Allica’s balance sheet has scaled to nearly £4 billion of SMB loans and over £5 billion of deposits. The bank now serves more than 30,000 established SMBs across the UK, which it says represents around 5 per cent of its target market. Allica is aiming for 10 per cent market penetration among established SMBs by 2028.

“We’re building the category-defining digital bank for established SMBs, and are excited to be taking our proprietary platform into new markets,” said Richard Davies, chief executive of Allica. “This Series D investment is a major vote of confidence in Allica’s strategy and performance.”

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