Allica Bank, a UK-based SME lender, has acquired Kriya, a SME lending fintech also based in the UK, specialising in working capital and embedded finance.

The acquisition expands Allica’s SME lending capabilities and marks its entry into the embedded payments market.

The two businesses are seen as a strategic fit, combining complementary strengths in lending and payments. Kriya will continue to operate under its own brand, with CEO and co-founder Anil Stocker remaining in charge.

All Kriya employees will join Allica as part of the transaction.

Since 2020, Allica has lent £3.5 billion to SMEs.

With Kriya, the bank aims to provide £1 billion in working capital finance over the next three years, targeting 10% of the established SME finance market by 2028.

Kriya has processed over £4 billion in invoice finance, SME loans, and embedded finance, supporting more than 300,000 transactions.

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.”

Anil Stocker, CEO of Kriya, added:

“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.”

Featured image credit: Allica Bank