Allica Bank acquires fintech Kriya in a move to deliver £1bn of SME working capital finance by 2028
Allica Bank has today announced the acquisition of Kriya, the award-winning SME lending fintech specialising in SME working capital and embedded finance.
The move strengthens Allica’s SME lending proposition and sees the UK’s fastest-ever growing fintech move into the embedded payments market for the first time.
The two businesses are a strong strategic fit, bringing together complementary strengths across lending and payments, with a shared passion for using technology to transform the established SME market and leadership who’ve known each other for a long time.
Allica is broadening its working capital and embedded finance proposition at a time when confidence among SMEs seeking funding has fallen from 56% to 31% since 2019, while only one in ten SMEs now have access to bank overdrafts or traditional loans – the lowest recorded level since 2019.
Since first opening its doors to lending in 2020, Allica’s impressive growth means its total outstanding lending to SMEs has now reached £3.5bn.
With the Kriya acquisition, Allica is targeting advancing an initial £1bn of working capital finance to SMEs over the next three years.
The acquisition accelerates Allica’s drive to penetrate 10% of the established SME finance market by the end of 2028, replacing the legacy high street banks who have been in retreat from serving this important segment that makes up a third of the UK economy.
Kriya is Allica’s third acquisition, following the successful purchase and integration of AIB’s GB SME lending customers in 2021 and bridging finance specialist Tuscan Capital in 2024.
Named the UK’s fastest growing company in 2024, and the fastest growing UK fintech ever in 2023, Allica is building on strong momentum.
The bank became profitable within three years of launching, with its award-winning lending and current account proposition – the Business Rewards Account – gaining significant traction with established SMEs, offering no monthly fees, a named relationship manager, cashback and technology that drives faster and more flexible lending decisions.
Since launching in 2011, Kriya (formerly known as MarketInvoice and MarketFinance) has processed over £4bn in invoice finance, SME loans and embedded finance. The fintech’s working capital solutions have helped thousands of businesses across more than 300,000 transactions. Kriya’s embedded PayLater solution – already integrated with major B2B retailers like Halfords – helps SME buyers manage cashflow by making it easier to access PayLater options at check-out.
Kriya will continue to operate under its own brand, which has strong recognition in the SME finance market. CEO and co-founder Anil Stocker will continue to lead the business, with all Kriya employees joining Allica as part of the transaction.
Richard Davies, CEO of Allica Bank, said: “For too long SMEs have struggled to access the flexible finance they need as the high street banks have retrenched. Allica is building something different – a better way to serve Britain’s established SMEs.
“Kriya has built an impressive business over more than a decade, and Anil and his team share our belief that SME finance needs reinventing, and that together we can offer something the market desperately needs.
“Our ambition is clear. We plan to lend £1 billion of working capital finance to SMEs over the next three years. This is our third acquisition but our first in the embedded payments space and it aligns well with our future potential international expansion.”
Anil Stocker, CEO of Kriya, said: “Combining forces with Allica gives us the right platform to scale what we’ve built. We share the same DNA – a genuine commitment to reinventing SME finance and competing with the big banks who’ve walked away from the SME market.
“There has never been a more relevant time to help SMEs survive a challenging and changing economic landscape.
“I’m excited about what we can achieve together, especially with our embedded finance offering, which we’re looking to roll out across Europe soon. Our customers will continue to get the same service and support from Kriya, but now with the backing and reach of one of the UK’s fastest growing banks.”