Acquisition set to deliver £1 billion in SME working capital finance by 2028
Allica Bank has acquired fintech firm Kriya in a strategic move designed to unlock £1 billion of working capital finance for UK SMEs over the next three years.
The deal marks Allica’s entry into the fast-growing embedded finance market for the first time. Kriya’s B2B PayLater platform – already used by major names including Halfords and through a partnership with Stripe – enables business buyers to spread the cost of purchases at checkout. By offering flexible payment terms at the point of sale, it helps SMEs manage cashflow more effectively while giving suppliers the confidence of being paid upfront.
Unlike consumer-facing “buy now, pay later” services, Kriya’s model is designed specifically for online trade purchasing. Independent retailers encounter it when buying stock through some wholesale marketplaces or suppliers’ own digital portals, where they can opt to delay payment for 30 to 90 days while the supplier is paid immediately.
For independent retailers, this type of business-to-business finance is increasingly attractive. It allows them to invest in new-season collections or replenish bestsellers without the strain of upfront payment, while suppliers benefit from quicker settlements and stronger order volumes.
The acquisition strengthens Allica’s SME lending proposition at a time when confidence among small firms seeking funding has fallen from 56 to 31 per cent since 2019, and only one in ten now have access to overdrafts or conventional loans – the lowest level in recent years.
Since opening for lending in 2020, Allica has grown to £3.5 billion in outstanding SME loans and became profitable within three years. The bank offers a relationship-managed current account – its Business Rewards Account – designed to give established SMEs faster lending decisions, cashback, and direct access to named account managers.
Founded in 2011 as MarketInvoice (later MarketFinance), Kriya has processed more than £4 billion in invoice and working capital finance and has supported over 300,000 transactions. The company will continue to operate under its own brand, led by CEO and co-founder Anil Stocker, with all employees joining Allica as part of the transaction.
Allica Bank CEO Richard Davies says the move represents another step in the bank’s mission to “build something different” for the UK’s established SMEs as high street banks continue to scale back their support. “Our ambition is clear: we plan to lend £1 billion of working capital finance to SMEs over the next three years,” he says.
Stocker adds that combining forces gives Kriya the platform to accelerate growth and strengthen its offering to business customers: “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 navigate a challenging and changing economic landscape.”
The acquisition follows Allica’s purchases of AIB’s GB SME lending customers in 2021 and bridging finance specialist Tuscan Capital in 2024. Named the UK’s fastest-growing company in 2024, Allica says it now plans to explore further opportunities to expand its embedded finance offering across Europe.