Europe’s fastest-growing startup Allica Bank has near doubled profits to £29.9m in 2024 (FY23 £16.1m).
The growth was driven by significant investment in its digital infrastructure, leading to a surge in revenue as the digitally-native bank grew its loan book to over £3bn and customer deposits surpassed £4bn.
It was Allica’s second full year of profitability in the four years since first opening for lending in 2020.
The year also saw the London-based firm top multiple UK and EU ‘fastest growth’ awards, including the UK’s fastest growing private company (Times Hundred), fastest growing tech company (Deloitte UK Fast 50), and Europe’s fastest growing start-up (Sifted).
The digital bank is aiming to disrupt the SME finance market, with its proprietary technology having been built specifically to serve established SMEs.
Allica is targeting 10% market penetration in the established SME banking market in the next three years.
The firm has also focused on the development its own in-house technology team and proprietary software, something which it says has delivered a significant competitive advantage.
It now has over 200 in-house product and engineering staff delivering over 3,500 technology releases in 2024, including new integrations with Wise, Sage and Xero.
“2024 has been our best year yet, with significant growth in revenue, lending and deposits demonstrating that we are offering a genuine alternative for established SMEs from the high-street banks and delivering on our promise to give them the banking they deserve,” said Richard Davies, CEO of Allica Bank.
“We are pleased to have almost doubled our pre-tax profit to £29.9 million, too, as we continue to grow sustainably.
“Allica has invested heavily in our proprietary technology capabilities to ensure we have the foundations in place to continue to scale at pace, in terms of the amount of established SMEs we’re supporting and the ways we’re supporting them.
“The pace of Allica’s growth is testament to the frustration that our customers feel with the status quo, and that Allica is offering something truly exciting and innovative.
“We are determined to continue championing the needs of SMEs across the country, and hopefully change business banking for good.”
Minister for Small Business, Gareth Thomas, added: “The UK has a thriving tech sector worth over $1 trillion, so I’m delighted that Allica has been recognised as Europe’s fastest growing start-up, supporting our vital SMEs, the driving force of our economy.
“With financial services and tech identified as key growth sectors in our upcoming Industrial Strategy, we are helping to deliver the long-term growth that supports skilled jobs and raises living standards across the UK, backing our Plan for Change.”