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, giving it unicorn status.
Allicatargets 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 roundincludes investment from Ventura Capital and existing investor, the US fund TCV.
Allica last raised in 2022, raisinga £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, andare 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