Allica Bank Acquires Kriya to Enter Embedded Finance Market and Boost SMB Lending

Allica Bank, one of the United Kingdom’s fastest-growing challenger banks, has made a decisive move into embedded finance with the acquisition of small and mid-sized business (SMB) lending FinTech Kriya.

Announced Wednesday (Oct. 22), the acquisition will enable Allica to integrate Kriya’s PayLater platform and extend flexible working capital options to SMBs — a market often underserved by traditional banks. The deal marks Allica’s most significant strategic expansion since it received its banking license in 2019.

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

The Combined Offering: Lending Meets Embedded Finance

The merger of Allica Bank’s lending infrastructure with Kriya’s embedded payments technology positions the combined company to advance £1 billion (about $1.3 billion) in working capital financing over the next three years.

Key Features of the Combined Offering	Description
Embedded PayLater Platform	Enables SMBs to offer deferred payment options to their customers directly at checkout.
Working Capital Financing	Provides short- and long-term funding to help SMBs manage cash flow and inventory cycles.
Omnichannel Integration	Businesses can access financing seamlessly through Kriya’s embedded APIs or Allica’s banking portal.
SMB Focus	Specifically targets the U.K.’s 5–250 employee segment, which accounts for one-third of the U.K. economy.

The acquisition is part of a broader effort to modernize SMB financing by integrating banking and payments into the point of need — whether at purchase, invoicing, or procurement.

Kriya’s Role and Leadership Continuity

Kriya, which began as MarketFinance in 2011 before rebranding, will retain its brand identity under the Allica umbrella. CEO and Co-Founder Anil Stocker will continue to lead the company, and all Kriya employees will join Allica Bank.

In its blog post, Kriya emphasized that joining Allica provides access to greater funding capacity and allows it to expand its reach across Europe.

“By joining Allica, Kriya combines FinTech agility with a bank’s scalability and reach,” Stocker said. “Together, we can deliver the end-to-end working capital products businesses have long needed.”

Kriya’s technology has been pivotal in enabling Buy Now, Pay Later (BNPL)-style solutions for B2B transactions, giving SMBs the ability to manage liquidity and extend flexible terms to their customers.

Allica’s Strategic Growth Trajectory

Since securing its banking license from the Prudential Regulation Authority in 2019, Allica Bank has positioned itself as a “bespoke bank for SMBs.” It focuses on businesses with 5–250 employees, offering lending, payment, asset finance, and savings products.

Allica Bank Milestones (2019–2025)	Highlights
2019	Received banking license; began offering tailored lending to established SMBs.
2021	Expanded nationwide with digital-first banking solutions for SMBs.
2024	Reached £3 billion in loans and £4 billion in deposits, signaling strong growth.
2025	Acquired Kriya to strengthen embedded finance and digital payments offerings.

This acquisition builds on Allica’s earlier investments in digital lending technology and positions it among the few U.K. banks that combine regulated banking infrastructure with FinTech-grade speed and flexibility.

“The pace of Allica’s growth underlines its potential to disrupt the SMB finance market,” the bank said in a prior statement. “Its proprietary technology has been built specifically to serve established businesses that drive the U.K. economy.”

Embedded Finance: A Growing Frontier for SMB Lending

Embedded finance is quickly transforming how small and mid-sized enterprises access capital. Instead of applying for loans through traditional channels, businesses can now tap into credit, invoice finance, and payment solutions directly through their existing business software, eCommerce platforms, or accounting tools.

This trend is projected to generate $7 trillion in global value by 2030, according to research by Accenture, with SMB finance representing one of the most promising use cases.

By integrating Kriya’s PayLater technology, Allica Bank gains access to this high-growth segment, combining real-time underwriting, API-driven credit decisioning, and automated repayment scheduling — all embedded into partner platforms.

“The acquisition positions Allica to compete directly with embedded lenders like Liberis, YouLend, and Funding Circle,” said Dr. Louise Beaumont, an embedded finance strategist and former co-chair of the Open Banking Working Group. “But crucially, it has something they don’t — a banking license.”

Market Reaction and Industry Implications

The acquisition is being viewed by analysts as a strong signal of consolidation between banks and FinTechs in the U.K. market, as both sides look to merge technological innovation with regulatory credibility.

For FinTech startups like Kriya, the deal brings capital stability and balance sheet strength. For Allica, it offers access to embedded distribution channels and customer networks in new verticals like B2B eCommerce and trade finance.

Industry experts say the move could accelerate lending to the U.K.’s 5.5 million SMBs, which collectively employ 16 million people and contribute £2 trillion to GDP.

“This deal bridges two worlds — traditional banking trust and FinTech innovation,” said Simon Cureton, CEO of Funding Options. “It’s a blueprint for how future banking partnerships will evolve.”

Why It Matters?

The U.K.’s SMB sector has long faced limited access to flexible, fast-turnaround financing. Legacy banks often lack the infrastructure to deliver embedded credit, while standalone FinTechs face balance sheet constraints.

By merging Kriya’s real-time PayLater infrastructure with Allica’s regulated banking capabilities, the combined entity promises to offer more predictable liquidity, faster credit approvals, and integrated payment flexibility — directly where businesses transact.

“SMBs are the backbone of the U.K. economy, and they deserve financing that matches their digital reality,” said Richard Davies. “This acquisition is a step toward that vision.”

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