Allica Bank has announced the signing of a new £110m Series B funding round.

The funding round, led by new investor Atalaya Capital Management, comes alongside Allica’s existing lead investor, Warwick Capital Partners.

Allica is the only fintech challenger bank in the UK dedicated to providing a full range of credit and payment services to established SMEs. Since first opening to SME lending in March 2020, the bank has built momentum in its existing lending, with more than £0.5bn in committed loan offers provided to customers in the last 12 months.

Alongside the funding, Allica has also announced its first major acquisition with an agreement to acquire around 2,000 SME customers and £0.6bn of associated SME lending from AIB Group.

Allica CEO, Richard Davies, said: “While most digital and challenger banks are focused on specialist lending markets or secondary payment accounts, this transaction demonstrates how Allica is leading the charge in taking on the mainstream ‘high street’ banking market for established, growing SMEs.

“We are fast becoming the SME lender of choice with our powerful mix of proprietary technology and experienced local relationship managers.”

“This £110m funding round, alongside the acquisition from AIB, will enable us to support and scale even more of Britain’s established SMEs and growth companies, at a time when SMEs are looking for more tailored support from their bank.”

“We’re laser focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK.”

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