Allica Bank has acquired Kriya, the award-winning SME lending fintech formerly known as MarketFinance, in a move that marks the UK’s fastest-growing fintech’s entry into the embedded payments market and signals its ambition to deliver £1 billion of SME working capital finance by 2028.
The acquisition strengthens Allica’s position in the SME finance sector by combining its growing business lending portfolio with Kriya’s specialist expertise in invoice, loan and embedded PayLater solutions.
The two firms described the deal as a “natural strategic fit”, citing shared technology-led missions and leadership teams with longstanding connections in the industry.
The deal comes amid a steep drop in SME confidence around access to funding, with only one in ten small businesses now able to secure overdrafts or traditional bank loans – the lowest level recorded since 2019.
Since launching in 2020, Allica Bank has grown rapidly, with total SME lending now standing at £3.5 billion. Following the acquisition, the bank plans to advance £1 billion in working capital finance over the next three years as part of its goal to capture 10% of the UK’s 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 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 offer something the market desperately needs.”
Founded in 2011, Kriya has processed more than £4 billion in invoice finance, SME loans and embedded finance across 300,000 transactions. Its PayLater solution, already integrated with B2B retailers such as Halfords, allows SME buyers to spread payments and better manage cashflow.
Under the terms of the deal, 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 business, with all Kriya employees joining Allica.
“Combining forces with Allica gives us the right platform to scale what we’ve built,” said Stocker.
“We share the same DNA — a genuine commitment to reinventing SME finance and competing with the big banks who’ve walked away from this market. Our embedded finance offering will now have the backing to expand across Europe.”
This is Allica’s third acquisition following its purchase of AIB’s GB SME lending portfolio 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 launch. Its flagship Business Rewards Account, which offers cashback, no monthly fees and named relationship managers, continues to gain traction among established SMEs.
The Kriya acquisition underscores Allica’s ambition to blend lending, payments and embedded finance into a unified proposition for Britain’s small and mid-sized businesses — a segment that represents nearly a third of the UK economy.
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Allica Bank acquires fintech Kriya in £1bn SME finance drive