London’s Allica Bank targets 10% UK SMB market share by 2028 after €131 million raise

Allica Bank, a British digital bank for SMBs that provides a proprietary full stack technology, has announced a €131 million ($155 million) Series D capital raise as it targets 10% market penetration in the UK by 2028.

The round was raised with investements from Ventura Capital, GLG , Sona AM and existing investors TCV and Blue Owl. The majority of the round consists of common equity, alongside a portion of new additional Tier 1 equity capital. This round values the FinTech at close to €1 billion ($1.2 billion).

Richard Davies, CEO of Allica, says: “We’re building the category defining digital bank for established SMBs, 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.”

In the broader European FinTech and SME-focused financial services landscape covered by EU-Startups in 2025–2026, several significant funding rounds and capital raises help contextualise Allica Bank’s €131 million Series D.

Notably, Duna raises €30 million to expand compliant AI for business identity and onboarding (a Netherlands-based digital identity FinTech) and London’s risk management platform Bound secures €20.7 million to support EU regulatory approval and growth (a UK-headquartered FX risk management platform) both reflect investment into infrastructure and compliance tools that complement core banking and financial offerings in the region.

In payments and treasury infrastructure, London’s Sokin bags additional €83 million for its payments platform illustrates continued capital flow into business-oriented financial infrastructure. Going back to early 2025, FinTech startup Wealthon secures €126 million for a financial services ecosystem for SMEs (a Warsaw-based SME financial services platform) highlights one of the larger raises aimed at broad SME finance solutions.

These rounds, spanning identity, risk tooling, payments and SME financial ecosystems, show Allica Bank’s Series D sits within a substantive pattern of funding across adjacent sub-sectors; several of these UK-based FinTechs, as well as SME-focused platforms in continental Europe, are also raising capital to grow product capabilities or expand geographically.

Mo El Husseiny, Managing Partner of Ventura Capital, adds: “Allica is a world class business that is executing exceptionally well in a large, underserved market. Ventura is proud to be a major investor in Allica’s Series D and we are raring to support this exceptional team’s next stage of growth into international markets.”

Founded in 2019, Allica is a bank built especially for established businesses with between 5 and 250 employees. A third of the UK’s economy depends on these businesses, yet Allica says they are overlooked by the big banks with a service that is increasingly impersonal, inconvenient, and poor value.

Allica Bank is on a mission to give established businesses “the banking they deserve“. This includes:

• A current account that rewards business owners for using it.
• A relationship manager whose name and number they actually know.
• A powerful tools and technology that make life easier, not harder.

Today’s Series D will fuel Allica’s continued lending growth and deepen investment into Allica’s proprietary technology stack, including using AI to innovate lending opportunities for established SMB businesses, while expanding outside of its UK home market for the first time.

John Doran, General Partner at TCV, says: “Allica’s proprietary full-stack technology is world-class – and provides a truly differentiated edge in SMB banking.”

Over the past five years, Allica’s balance sheet has scaled to nearly €4.5 billion (£4 billion) of SMB loans, and over €5.7 billion (£5 billion of deposits) – and in 2023 launched its Business Rewards Account.

Allica now serves over 30,000 established SMB businesses across the UK, around 5% of its target market, and is targeting 10% market penetration amongst established SMBs by 2028.

Michael Kalfayan, General Partner at TCV, adds: “Allica solves what customers have long been asking for – speed, reliability and trust – reflected in its outstanding performance in recent years. Looking ahead, we see Allica as a frontrunner in applying AI across front and back office processes in financial services, and we are excited to support the team’s ambition to fundamentally improve SMB banking across Europe.”

The post London’s Allica Bank targets 10% UK SMB market share by 2028 after €131 million raise appeared first on EU-Startups.