In a strategic move to enhance its offerings, Allica Bank has announced the acquisition of Kriya, a FinTech specializing in lending solutions for small and mid-sized businesses (SMBs). This acquisition marks Allica’s entrance into the embedded finance market. By integrating Kriya’s technological capabilities, Allica aims to bolster its financial services aimed at businesses struggling to secure versatile financing options. The partnership plans to strengthen its position in the competitive financial landscape by increasing its reach and service diversity.
Allica started its journey focusing on providing bespoke financial services to SMBs, and this latest acquisition is consistent with their previous development strategies. Since its inception, Allica has demonstrated significant growth, notably after securing its U.K. banking license in 2019, positioning itself as a significant player in the field. The bank has expanded its loan book and customer deposits substantially over the years, underscoring its rapid development in the market.
What Does the Acquisition Include?
The acquisition includes Kriya’s embedded business PayLater solution, allowing Allica to introduce new financing products tailored to SMBs. This combination promises to offer more flexible working capital options and increase access to short- and long-term funding solutions. The move aims to channel approximately £1 billion of working capital into the SMB sector over the next three years, providing much-needed support for these businesses.
How Will Kriya Operate Post-Acquisition?
Even after the acquisition, Kriya will retain its identity and continue operations under its brand name. Anil Stocker, Kriya’s CEO and Co-Founder, will continue to lead the company. All employees of Kriya will seamlessly integrate into Allica’s workforce, ensuring continuity and leveraging combined strengths. Allica Bank CEO Richard Davies highlighted,
The shared belief in reinventing SMB finance presents an opportunity to deliver desperately needed solutions to the market.
Kriya views this development as an opportunity to leverage Allica’s scalability and reach, enhancing business offerings across Europe. They believe that joining forces with Allica will allow them to innovate more efficiently in developing new lending and payment products. Kriya expressed confidence in the merger, stating,
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.
Richard Davies has pointed out that SMBs often find it challenging to access finance, which is often rigidly structured and inflexible. Allica aims to tackle this issue head-on, providing efficient and adaptable financial products through its acquisition of Kriya. The acquisition is expected to extend Allica’s market presence and diversify its offerings.
Despite the rapidly changing financial landscape, Allica’s strategic alignment with Kriya indicates a commitment to addressing the nuanced financial needs of established SMBs. With innovation being a keystone of their strategy, the collaboration is poised to drive substantial benefits for business clients across the U.K. and potentially beyond. This could signify a pivotal shift in the SMB finance sector, as more traditional banking institutions explore similar pathways towards embedded finance solutions.
