INDUSTRY // Fin. tech

The two businesses are a strong strategic fit, bringing together complementary strengths across lending and payments with a shared focus on using technology to transform the established SME market. Allica is broadening its working capital and embedded finance proposition at a time when confidence among SMEs seeking funding has fallen from 56 % to 31 % since 2019, while only one in 10 SMEs now have access to bank overdrafts or traditional loans, the lowest recorded level since 2019. Since opening its doors to lending in 2020, Allica’ s growth has taken total outstanding lending to SMEs to £ 3.5 billion.

With the Kriya acquisition, Allica aims to advance an initial £ 1 billion of working capital finance to SMEs over the next three years. The acquisition accelerates Allica ' s goal to capture 10 % of the established SME finance market by the end of 2028, replacing legacy high street banks that have withdrawn from serving this key segment, which makes up a third of the UK economy.

Kriya is Allica ' s third acquisition, following the purchase and integration 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 and the fastest growing UK FinTech in 2023, Allica is building on strong momentum. The bank became profitable within three years of launching. Its awardwinning lending and Business Rewards Account have gained strong traction with established SMEs, offering no monthly fees, a named relationship manager, cashback and technology enabling faster, more flexible lending decisions.

Since launching in 2011, Kriya( formerly MarketInvoice and MarketFinance) has processed over £ 4 billion in invoice finance, SME loans and embedded finance. Its working capital solutions have supported thousands of businesses across more than 300,000 transactions. Kriya ' s embedded PayLater solution, already integrated with major B2B retailers like Halfords, helps

SME buyers manage cashflow by making PayLater options available at checkout.

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 and that together we can offer something the market desperately needs.” p

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