Allica Bank’s Strategic Kriya Acquisition Set to Transform SMB Lending Landscape

Allica Bank Makes Bold Move Into Embedded Finance

In a strategic expansion of its financial services portfolio, Allica Bank has completed the acquisition of Kriya, positioning itself as a major player in the rapidly growing embedded finance market. This landmark deal represents a significant shift in how established small and medium-sized businesses (SMBs) will access working capital and payment solutions across the United Kingdom and potentially throughout Europe.

Revolutionizing SMB Finance Through Combined Strengths

The newly combined entity aims to address a critical gap in the market for established SMBs that have traditionally struggled to secure flexible financing options. According to the acquisition announcement, Allica Bank has set an ambitious target to advance £1 billion (approximately $1.3 billion) in working capital finance to SMBs over the next three years through this enhanced offering., as related article

Richard Davies, CEO of Allica Bank, emphasized the strategic importance of the acquisition: “Kriya has built an impressive business over more than a decade, and Anil and his team share our belief that SMB finance needs reinventing, and that together we can offer something the market desperately needs.”

Preserving Innovation While Scaling Impact

In an unusual move that highlights the value of Kriya’s brand and operational expertise, the acquired company will continue to operate under its own brand identity. Kriya’s CEO and Co-Founder Anil Stocker will remain at the helm, and all existing Kriya employees will transition to Allica Bank, ensuring continuity and preserving the innovative culture that has driven Kriya’s success.

This approach demonstrates Allica’s recognition that Kriya’s fintech agility, when combined with Allica’s banking infrastructure, creates a powerful synergy that could redefine SMB lending standards., according to recent research

Expanded Product Portfolio and European Ambitions

The acquisition enables both companies to significantly enhance their service offerings. Kriya will now be positioned to:

• Provide increased funding capacity to a broader range of businesses
• Offer both short-term and long-term funding solutions through a unified platform
• Accelerate development of new lending and payment products leveraging combined technological capabilities
• Expand operations across European markets with enhanced financial backing

In their official statement, Kriya highlighted the transformative potential: “By joining Allica, Kriya combines FinTech agility with a bank’s scalability and reach — delivering the end-to-end working capital products businesses have long needed.”, according to industry reports

Allica’s Rapid Growth Trajectory

Since obtaining its banking license from the U.K.’s Prudential Regulation Authority in September 2019, Allica Bank has experienced remarkable growth. The company, which describes itself as a “bespoke bank for SMBs,” has developed specialized financial tools including loans, payment services, asset finance products, and savings solutions tailored specifically for established small and medium enterprises.

The bank’s recent performance metrics underscore its accelerating market presence. In April 2024, Allica reported growing its loan book to over £3 billion (approximately $4 billion) and customer deposits to over £4 billion (approximately $5.3 billion).

Company officials noted that “the pace of Allica’s growth underlines the digital bank’s potential to disrupt the SMB finance market,” adding that their “innovative proprietary technology has been built specifically to serve established SMBs — those businesses typically with 5-250 staff — who make up a third of the U.K.’s economy.”

Market Implications and Future Outlook

This acquisition signals a broader trend of traditional banking institutions recognizing the value of embedded finance platforms and fintech innovation. By integrating Kriya’s technology and market presence with Allica’s banking infrastructure and capital resources, the combined entity is well-positioned to capture significant market share in the underserved SMB lending sector.

The move also reflects increasing competition in the embedded finance space, where technology-driven financial solutions are becoming increasingly integrated into business operations and e-commerce platforms. As SMBs continue to seek more flexible, accessible financing options, partnerships and acquisitions of this nature are likely to become more common across the financial services landscape.

Industry analysts will be watching closely to see how this strategic combination performs in delivering on its promise to revolutionize working capital solutions for the backbone of the British economy — established small and medium enterprises that have historically been overlooked by traditional banking institutions.

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