Allica Bank will join Revolut, Monzo and Starling as fintech unicorns.
UK challenger business bank Allica Bank is to become the latest UK fintech unicorn, following a $155m (£111m) Series D funding round, according to a report.
Allica is expected to announce tomorrow that its new valuation will hit $1.2bn (£890m), following the Series D round, Sky News says.
It will mean that Allica will join the likes of Revolut, Monzo, Starling and Zilch in being valued at more than $1bn.
Allica targets the established SME sector (between five and 250 employees), offering them lending, such as commercial mortgages and equipment loans, and current and savings accounts.
The Series D round includes investment from Ventura Capital and existing investor, the US fund TCV.
Allica last raised in 2022, raising a £100m Series C round.
The funds are understood to be earmarked for expansion in Northern Europe, where it is considering buying a bank, as well as developing its AI offering.
Allica is headed up Richard Davies, a former Revolut executive.
Davies said: ‘“We are building the category-defining digital bank for established small and medium businesses, and are excited to be taking our proprietary platform into new markets.
“This Series D investment is a major vote of confidence in Allica’s strategy and performance.”
Image: Allica Bank