Allica Bank, a UK-based financial institution, has made strategic moves to enhance its offerings for small and medium enterprises (SMEs) by acquiring Kriya, a company known for its embedded payments and business lending solutions. The acquisition is part of Allica’s strategy to diversify and broaden its financial services. This new development signifies Allica’s entry into the integrated payment services domain, aiming to cater to non-financial businesses.
Allica has previously acquired Allied Irish Bank’s SME lending customers in 2021, a strategic acquisition that enabled Allica to strengthen its foothold in the SME market. More recently, the lender acquired Tuscan Capital, a bridging finance specialist, in 2024, enhancing its lending capabilities. In comparison, with the acquisition of Kriya, Allica is venturing into a new arena, integrating payments services to extend its market reach. This marks a transition from traditional lending to technologically-driven financial solutions.
What Does This Acquisition Mean for Allica?
The acquisition of Kriya allows Allica to strengthen its lending offerings while embedding payment solutions into their services. Allica foresees the transaction as a “strong strategic fit” that aligns with its goals to provide comprehensive financial services to SMEs. Allica, established in 2020, has already facilitated £3.5 billion in SME lending. The bank now plans to allocate £1 billion over the next three years in working capital finance to SMEs, utilizing the newly acquired capabilities.
How Will Kriya Integrate With Allica’s Operations?
Kriya will maintain its brand identity, continuing to operate under the leadership of Anil Stocker, co-founder and current CEO. Kriya’s existing workforce, comprising 30 employees, will integrate into Allica’s broader team, which numbers 680 people. Richard Davies, CEO of Allica Bank, emphasized the synergy.
“Kriya has built an impressive business over more than a decade,”
Davies noted, elaborating on the shared vision between the two companies to revolutionize SME finance.
Financial specifics of the acquisition remain undisclosed; however, the expansion presents Allica’s strategy of scaling its operations and exploring international opportunities. This acquisition is Allica’s first foray into offering embedded payment services, showcasing its changing approach towards serving SMEs and tackling their financial needs through varied services.
Allica last orchestrated significant funding in 2022, securing £100 million in a Series C funding round led by TCV. The involvement of various investors, such as Warwick Capital Partners and Atalaya Capital Management, reflects broad-based confidence in Allica’s growth blueprint. Meanwhile, Kriya has sustained its operations with backing from entities like Northzone, Barclays, Santander, and Cogito Capital Partners.
Anil Stocker shares similar growth ambitions, highlighting the potential to amplify Kriya’s accomplishments alongside Allica.
“Combining forces with Allica gives us the right platform to scale what we’ve built,”
Stocker explained, focusing on disrupting SME finance and rivaling established banks that have retreated from serving this sector.
The alliance between Allica and Kriya signifies a significant shift toward innovation within SME lending markets. With the UK’s SME market experiencing transformational changes in recent years, integrated payment services are becoming pivotal. Observers suggest Allica’s new direction may set a precedent for other institutions, further influencing the financial landscape. Allica Bank’s initiative underlines the ongoing evolution within banking, where consolidation and strategic acquisitions leading to diversification remain key growth strategies.
