Allica Bank has swooped to acquire Kriya, the SME lending FinTech specialising in SME working capital and embedded finance.
The SME credit and payments firm was formerly known as MarketInvoice and MarketFinance. The acquisition will see Allica move into the embedded payments market for the first time.
Allica says confidence among SMEs seeking funding is falling rapidly, while only one in ten 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 £3.5 billion.
With the Kriya acquisition, Allica is targeting advancing an initial £1 billion 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,” the firm stated.
Kriya is Allica’s third acquisition, following the 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, became profitable within three years of launching.
Kriya, which launched in 2011, has processed over £4bn in invoice finance, SME loans and embedded finance.
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, Allica says. CEO and co-founder Anil Stocker will continue to lead the business.
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.”
Stocker 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.”