London-based digital bank Allica Bank has achieved unicorn status after securing $155 million in Series D funding, valuing the company at $1.2 billion. The fintech, founded in 2011, serves over 30,000 small and medium businesses across the UK and topped Sifted's 250 ranking of Europe's fastest-growing startups in 2024.

Ventura Capital led the funding round alongside GLG, Sona AM, and existing investors TCV and Blue Owl. The investment includes both ordinary shares and additional Tier 1 equity capital, a regulatory instrument used by banks. This milestone places Allica among Europe's elite fintech unicorns, joining companies like AI fintech Cleo and Danish payments platform Flatpay that have achieved similar valuations in the past year.

Allica plans to use the capital to expand its lending portfolio, enhance its technology stack with AI integration, and prepare for international expansion beyond the UK. CEO Richard Davies emphasized the company's mission to build "the category defining digital bank for established SMBs" as it enters new markets with its proprietary platform.