Allica acquires fintech Kriya to deliver £1bn in SME finance by 2028

Allica Bank has today announced the acquisition of Kriya, the SME credit and payments fintech, in a move designed to expand its working capital offering and enter the fast-growing embedded finance market for the first time.

The acquisition strengthens Allica’s position as a leading lender to established SMEs and supports its ambition to deliver £1 billion in working capital finance by 2028. The bank is targeting 10% market penetration of the UK’s established SME segment by the end of that period.

Kriya, formerly known as MarketInvoice and MarketFinance, has processed over £4 billion in SME loans, invoice finance, and embedded finance transactions since its launch in 2011. Its flagship PayLater solution – used by major brands such as Halfords and available through a partnership with Stripe – enables business buyers to spread payments and manage cashflow more effectively at checkout.

The deal marks Allica’s third acquisition, following the successful integrations of AIB’s GB SME lending customers in 2021 and bridging finance specialist Tuscan Capital in 2024. It also represents a significant step into embedded payments, further broadening Allica’s proposition for established small and medium-sized enterprises.

The acquisition comes amid a decline in confidence among SMEs seeking funding, with only 31% now optimistic about accessing finance compared with 56% in 2019. Traditional overdrafts and bank loans are at their lowest availability in years, with just one in ten SMEs able to access them.

Since beginning SME lending in 2020, Allica has grown at record pace, with £3.5 billion in outstanding loans to UK businesses. Named the UK’s fastest-growing company in 2024 and the fastest-growing fintech in UK history in 2023, Allica has become profitable within three years of launch. Its Business Rewards Account, offering no monthly fees, cashback, and a dedicated relationship manager, has gained strong traction with growing firms across the UK.

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. Together, we can deliver 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 first move into embedded payments, and it aligns well with our future plans for international expansion.”

Anil Stocker, CEO and Co-founder of Kriya, added: “Combining forces with Allica gives us the 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.”

Kriya will continue to operate under its existing brand, retaining its leadership team and all employees as part of the transaction.