Allica Bank boosts SME lending with Kriya deal

A UK fintech is set to expand SME finance and embedded payment options.

Allica Bank has bought Kriya, the award-winning SME credit and payments fintech which has processed over £4 billion in loans, invoice finance and embedded finance solutions, in a move that strengthens its working capital proposition and marks its entry into the embedded finance market. 

Bosses say the combined offering will enable thousands of SMEs to access faster, more flexible working capital and PayLater solutions, already used by major retailers including Halfords and integrated with Stripe.

They add that Kriya, formerly MarketInvoice, will retain its brand and leadership, with chief executive and co-founder Anil Stocker continuing to lead the business and all Kriya employees joining Allica.

Anil 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.”

Allica has continued its rapid growth since 2020, when it first began lending. 

Total outstanding SME lending has now reached £3.5 billion, with the Kriya deal positioning the bank to advance £1 billion of working capital finance over the next three years. 

The move also supports Allica’s goal of reaching ten per cent of the established SME finance market by 2028, replacing legacy banks that have retreated from this segment.

Richard Davies, 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.”

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