British SME challenger bank Allica has secured £25 million in funding from existing investors, as well as a £30 million Tier 2 capital facility from British Business Investments.
The £25 million comes from Atalaya Capital Management and Warwick Capital Partners, which previously led Allica’s £110 million Series B funding round in November.
In addition, the lender can draw on the £30 million capital facility from British Business Investments - a wholly-owned commercial subsidiary of the British Business Bank.
Last year, Allica grew its SME lending to over £560 million - more than 12 times higher compared to the end 2020. Deposits have also grown to over £800 million, contributing to annual net operating income of £7.8 million in 2021.
Richard Davies, CEO, Allica Bank, says: "The new facility from British Business Investments alongside further equity from our existing lead investors will enable Allica Bank 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.
"Allica is fast becoming the SME challenger bank of choice through combining our proprietary technology with experienced local relationship managers to provide great customer experience.
"Looking ahead, we are hugely excited about our plans to develop Allica’s customer proposition as we continue our mission to reimagine relationship banking for SMEs."