Allica Bank secures $155m series D for SME lending growth

By Vriti Gothi

UK-based SME lender Allica Bank has secured $155 million in a Series D funding round to accelerate domestic growth, deepen investment in its technology platform, and support its first international expansion.

The round was led by Ventura Capital, with participation from GLG, Sona Asset Management, and existing backers Technology Crossover Ventures (TCV) and Blue Owl Capital. The majority of the raise comprises common equity, alongside a portion of additional Tier 1 capital. The funding values the bank at close to $1.2 billion.

The capital injection will support continued balance sheet expansion particularly in SME lending—and further development of Allica’s proprietary full-stack platform, with a focus on applying artificial intelligence to enhance credit assessment and lending opportunities for established small and medium-sized businesses.

Allica serves businesses typically employing between five and 250 staff, a segment often described as underserved by traditional banks. Over the past five years, the lender has grown its loan book to nearly £4 billion and deposits to more than £5 billion. It currently serves more than 30,000 UK SMEs, representing about 5% of its target market, and aims to reach 10% penetration by 2028.

The funding also marks the company’s intention to enter markets beyond the UK for the first time, positioning the next phase of growth around geographic diversification and technology-led scalability.

The funding reflects continued investor interest in specialist digital banks targeting defined SME segments, particularly those combining balance sheet lending with proprietary technology. As competition intensifies in SME banking and margins tighten, lenders are increasingly using AI-driven underwriting and operational automation to improve credit decisions, reduce costs, and scale efficiently.

For the UK market, Allica’s growth ambitions signal ongoing fragmentation in SME banking, where challenger institutions are seeking to capture share from incumbents by focusing on speed, service quality, and tailored products for established small businesses. International expansion suggests similar opportunities may be emerging across European SME markets.