The lender will leverage Kriya’s embedded business PayLater solution to help SMEs access faster working capital and PayLater options.
Allica Bank said it was broadening its services at a time when confidence among SMEs seeking funding had fallen from 56% to 31% since 2019, and just a tenth of SMEs have access to bank overdrafts or traditional loans.
Since its establishment in 2020, Allica Bank has lent £3.5bn to SMEs, and following the Kriya acquisition, it is now targeting an additional £1bn of working capital finance to SMEs over the next three years.
The acquisition also brings forward Allica Bank’s aim to penetrate 10% of the established SME finance market by the end of 2028 and replace legacy high street banks.
This is Allica Bank’s third acquisition, following the purchase and integration of AIB’s GB SME lending customers in 2021 and bridging finance lender Tuscan Capital last year.
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Since launching in 2011, Kriya has processed over £4bn in invoice finance, SME loans and embedded finance.
Kriya will continue to operate under its own brand, while CEO and founder Anil Stocker will continue to lead the business, and its employees will join Allica Bank.
Richard Davies (pictured, right), 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, and that together we can offer something the market desperately needs.
“Our ambition is clear. We plan to lend £1bn 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.”
Anil Stocker (pictured, left), CEO of Kriya, added: “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.”
