Allica Bank has announced a £100m Series C funding round led by technology investor, TCV.

The funding also included participation from existing investors Warwick Capital Partners and Atalaya Capital Management.

The new investment will allow Allica to scale rapidly and “accelerate its disruptive impact” in the UK SME market.

Allica is the UK’s only digitally-native challenger bank committed to providing a full-service banking relationship to established SMEs and entrepreneurs, offering them lending, savings and payments.

These established SME businesses typically have 10 to 250 employees and represent around a third of the UK economy, however Allica believes they are neglected by both mainstream high street banks and other fintechs who instead focus on consumers and micro-businesses.

Chief executive of Allica Bank, Richard Davies, said: “From the moment we sat down with TCV it was clear we shared the same vision to transform SME banking in the UK, by taking on the mainstream ‘high street’ banking market.

“It’s a massive vote of confidence in the team we’ve built at Allica to attract backing from such a world-class technology investor under the toughest of market conditions, and this £100m funding round will enable us to support far more of Britain’s established and growth companies, who have been underserved for too long.”

With its latest investment, Allica joins TCV’s roster of portfolio companies which includes names such as Airbnb, Netflix, and Spotify, as well as fintechs such as Brex, Mambu, Mollie, Nubank, Qonto, Razorpay, Revolut, Toast, Trade Republic and Zepz.

Partner at TCV, Michael Kalfayan, added: “Richard and team have built a truly impressive platform that is looking to solve a great need for UK established SMEs, a highly complex segment to serve. TCV is laser-focused on partnering with market-leading companies seeking to leverage technology to transform industries.

“Allica is a prime example of this and we’re incredibly excited to collaborate with this strong team as they work to be the country’s leading digitally-native SME bank.”

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