Allica Bank, hailed as the º£½ÇÊÓƵ's fastest-growing fintech, has reported a near doubling of its profit over the last year following a period of significant expansion.
The digital bank, which serves small and medium-sized enterprises (SMEs), saw its pre-tax profits soar by 86% to £29.9m, as reported by .
In 2024, Allica's lending activity surged past £1bn, while revenue increased by 68% to £292.1m, up from £173.9m in 2023.
Richard Davies, CEO of Allica, described the SME market as a "barren wasteland" five to ten years ago in an interview with City AM, crediting the bank's "strategic focus" on this sector as a cornerstone of its success.
Since its inception in 2020, Allica has quickly risen to prominence within the fintech sector, earning recognition for its rapid growth trajectory.
It has been named the º£½ÇÊÓƵ's fastest-growing private company by The Times Hundred and Europe's fastest-growing start-up by Sifted.
Last year marked Allica's first profitable year, and the company is 'expected' to have achieved unicorn status.
Allica 'expected' to have reached unicorn status
Davies, who previously held positions as COO at Revolut and CEO of OakNorth, is now channeling his passion for the SME market into driving Allica towards a goal of 10% market penetration over the next three years.
"We have that super clear focus on an established business segment, I think really, really helps because there's been no pivot," he stated.
"It's purely a: 'How do we execute against that statement needs every single day?'"
Additionally, Davies has set a personal ambition to reach the 10% market share target by early 2027.
The company is one of the º£½ÇÊÓƵ's top fintechs tipped to reach unicorn status – a valuation exceeding £1bn.
While Allica's latest funding round occurred in 2022, another would be necessary to confirm its valuation.
Davies remarked that no plans were in place for an additional funding round, but he "expect" that such a move would propel the business to the unicorn milestone.
Furthermore, he noted that while there are no ongoing discussions about a public listing, London would be a "natural location" due to the company's º£½ÇÊÓƵ-based operations.
Looking towards the future, Davies commented that the firm adopts the philosophy that "none of the products are more than half done."
As a result, he suggested this mindset paves the way for "huge ranges of improvement" which includes speeding up lending decisions and incorporating Artificial Intelligence to make application procedures more efficient.
