Allica Bank has announced the acquisition of 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 sector and strengthens its position in the small business finance market.
The deal, revealed on Wednesday, combines Allica’s expanding business lending portfolio with Kriya’s expertise in invoice finance, SME loans, and PayLater embedded finance solutions. Both companies described the acquisition as a “natural strategic fit,” highlighting their shared technology-led approach and longstanding relationships within the UK fintech ecosystem.
Founded in 2020, Allica Bank has become one of the UK’s leading challengers to traditional banks, growing its SME lending book to £3.5 billion. Following the acquisition, the bank aims to deliver £1 billion in SME working capital finance by 2028 as part of its goal to capture 10% of the UK’s SME finance market.
“For too long SMEs have struggled to access the flexible finance they need as the high street banks have retrenched,” said Richard Davies, CEO of Allica Bank. “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.”
Kriya, founded in 2011, has processed more than £4 billion in invoice and loan financing across 300,000 transactions. Its PayLater solution, which allows small businesses to spread payments and manage cashflow more effectively, is already used by major B2B retailers such as Halfords.
Under the agreement, Kriya will continue to operate under its existing brand as a wholly owned subsidiary of Allica Bank. Co-founder and CEO Anil Stocker will remain in his leadership role, with all Kriya employees joining Allica’s team.
“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 that have stepped back from this market. Our embedded finance offering will now have the backing to expand across Europe.”
The acquisition comes amid a sharp decline in SME confidence around access to credit, with only one in ten small businesses now able to secure overdrafts or traditional bank loans — the lowest level since 2019.
This marks Allica’s third major 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 fintech in 2023, Allica became profitable within three years of launch.
The move underscores Allica’s ambition to merge lending, payments, and embedded finance into a single offering for Britain’s small and mid-sized enterprises — a sector that accounts for nearly one-third of the UK economy.
