Allica Bank joins the fintech unicorn club after $155M Series D round

London-based digital challenger bank Allica Bank has officially crossed the unicorn threshold after closing a $155 million Series D funding round that valued the company at around $1.2 billion.

This places the fintech among the growing list of private companies with valuations above $1 billion, alongside peers such as Revolut, Monzo, Starling and Zilch.

The round was led by global investors including Ventura Capital, GLG and Sona Asset Management, with continued support from existing backers TCV and Blue Owl.

A substantial portion of the investment came in ordinary equity, with a smaller allocation structured as additional Tier 1 capital, a regulatory instrument that strengthens a bank’s balance sheet.

Founded in 2019 and operating under a UK banking licence, Allica Bank focuses on serving small and medium-sized enterprises (SMEs), a segment often overlooked by both traditional banks and typical retail neobanks.

Its product suite includes business accounts, savings products and commercial lending, tailored specifically for businesses with 5–250 employees.

Part of the fresh capital will be used to expand Allica’s lending portfolio, deepen investment in its tech stack and accelerate international expansion for the first time.

The bank has spoken publicly about plans to use AI technologies to improve lending processes and underwriting capabilities, reflecting a broader trend among growth fintechs.

Allica’s unicorn valuation comes at a time when the UK remains a leading hub for fintech innovation. After several years of rapid revenue and lending growth, including surpassing £1 billion in lending activity,  the bank has solidified its reputation as one of the sector’s standout success stories.

Earlier recognition from industry rankings highlighted its rapid expansion and market adoption even before this funding round.

Becoming a unicorn signals both investor confidence and the growing maturity of fintech challengers addressing niche or underserved markets.

For Allica, the milestone represents both validation of its SME-focused strategy and a springboard for broader growth across Europe.