Allica Bank has acquired Kriya, the award-winning SME lending fintech formerly known as MarketFinance. This marks the entry of the UK’s fastest-growing fintech company into the embedded payments market and signals its aim to provide £1 billion of SME working capital funding by 2028.
The acquisition strengthens Allica’s position in the SME finance sector by combining its growing business lending portfolio with Kriya’s expertise in invoice, credit and embedded PayLater solutions.
The two companies called the deal a “natural strategic fit,” citing shared technology-focused missions and leadership teams with long-standing ties in the industry.
The deal comes amid a sharp decline in SME confidence in accessing finance, with only one in 10 small businesses currently able to secure overdrafts or traditional bank loans – the lowest level since 2019.
Since its launch in 2020, Allica Bank has grown rapidly and total lending to SMEs now stands at £3.5 billion. Following the acquisition, the bank plans to provide £1bn of working capital finance over the next three years to capture 10% of the UK SME finance market by 2028.
Richard Davies, CEO of Allica Bank, said: “For too long SMEs have struggled to access the flexible finance they need as the big banks have pulled back. Allica is building something different – a better way to serve the UK’s established SMEs.”
“Kriya has built an impressive business over more than a decade, and Anil and his team share our belief that SME financing needs to be reinvented. Together we can offer something the market desperately needs.”
Founded in 2011, Kriya has processed more than £4 billion of invoice finance, SME loans and embedded finance across 300,000 transactions. Its PayLater solution, already integrated with B2B retailers such as Halfords, enables SME buyers to spread payments and better manage cash flow.
Under the agreement, Kriya will retain its brand identity and operate as a subsidiary of Allica Bank. CEO and co-founder Anil Stocker will continue to lead the company and all Kriya employees will move to Allica.
“Joining forces with Allica gives us the right platform to scale what we have built,” said Stocker.
“We share the same DNA – a real commitment to reinventing SME finance and competing with the major banks that have withdrawn from this market. Our embedded finance offering will now have the support to expand across Europe.”
This is Allica’s third acquisition, following its purchase of AIB’s UK SME lending portfolio in 2021 and bridging finance specialist Tuscan Capital in 2024.
Allica was named the UK’s fastest-growing company in 2024 and the UK’s fastest-growing fintech ever in 2023, becoming profitable within three years of launch. Its flagship Business Rewards account, which offers cashback, no monthly fees and designated account managers, is becoming increasingly popular with established SMBs.
The Kriya acquisition underlines Allica’s aim to bring together lending, payments and embedded finance into a unified offering for small and medium-sized businesses in the UK – a segment that accounts for almost a third of the UK economy.
