Allica Bank has acquired Kriya, the SME credit and payments fintech formerly known as MarketInvoice, as part of its ambition to deliver £1 billion of working capital finance to small and medium-sized enterprises by 2028.
The deal marks Allica’s entry into the embedded finance market for the first time, bringing together two businesses that have become established players in SME lending and payments technology.
Kriya’s PayLater platform – used by firms including Halfords and through a partnership with Stripe – allows business customers to defer payments at checkout, helping them to better manage cashflow.
Allica said the acquisition would expand its working capital and embedded finance offering at a time when SME confidence in obtaining funding has declined sharply. Just 31% of businesses seeking finance are now confident of securing it, down from 56% in 2019, while access to traditional bank lending is at its lowest recorded level since that year.
GROWTH STRATEGY
Since beginning SME lending in 2020, Allica has grown its book to £3.5 billion. Its latest acquisition is expected to help the bank reach its target of advancing £1 billion in new working capital facilities over the next three years and to achieve 10% penetration of the established SME market by 2028.
Kriya has processed more than £4 billion in loans, invoice finance and embedded finance since its launch in 2011, supporting thousands of businesses across more than 300,000 transactions. Its current leadership team, including chief executive and co-founder Anil Stocker, will remain in place, and all employees will transfer to Allica as part of the deal.
FLEXIBLE FINANCE
Richard Davies (main picture, left), chief executive 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.”
EMBEDDED FINANCE OFFERING
Stocker (main picture, right) added: “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.”
FASTEST GROWING COMPANY
The acquisition is Allica’s third, following the purchase of AIB’s GB SME lending book in 2021 and bridging finance specialist Tuscan Capital in 2024. The bank, which became profitable within three years of launch, has been recognised as the UK’s fastest growing company in 2024 and the fastest growing fintech in 2023.
Its Business Rewards Account, which offers cashback, a named relationship manager and no monthly fees, has been central to its growth among established SMEs.
Both firms said the combination of Allica’s lending expertise and Kriya’s digital payment technology would deliver faster, more flexible finance to thousands of small businesses across the UK.
