Elica Bank has acquired award-winning SME lending fintech Kriya, previously known as MarketFinance, a move that marks the entry of the UK’s fastest growing fintech into the embedded payments market and signals its ambition to deliver £1bn of SME working capital finance by 2028.
This acquisition strengthens Alica's position in the SME finance sector by combining its growing trade loan portfolio with Kriya's specialist expertise in invoice, loan and embedded payer solutions.
Both companies described the deal as a “natural strategic fit”, citing shared technology-based missions and leadership teams with long-term relationships in the industry.
The deal comes amid a sharp decline in SME confidence in accessing funding, with only one in ten small businesses now able to secure an overdraft or traditional bank loan – the lowest level recorded since 2019.
Since launching in 2020, Elica Bank has grown rapidly, with total SME loans now worth £3.5 billion. Following the acquisition, the bank plans to advance £1 billion in working capital finance over the next three years as part of its aim to capture 10% of the UK SME finance market by 2028.
Richard Davies, CEO of Elica Bank, said: “For too long SMEs have struggled to access flexible finance as high street banks have cut back. Elica is creating something different – a better way to serve the UK'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 to be re-invented. Together, we can offer something the market desperately needs.”
Founded in 2011, Kriya has processed over £4 billion in invoice finance, SME loans and embedded finance across 300,000 transactions. Its PayLater solution, which is already integrated with B2B retailers like Halfords, allows SME buyers to spread payments and better manage cash flow.
Under the terms of the deal, Kriya will retain its brand identity and operate as a subsidiary of Elica Bank. CEO and co-founder Anil Stocker will continue to lead the business, with all Kriya employees joining Alica.
“Combining forces with Alica gives us the perfect platform to enhance what we have built,” Stocker said.
“We share the same DNA – a real commitment to reinventing SME finance and competing with the big banks that have walked away from this market. Our embedded finance offering will now have the support to expand across Europe.”
It is Alica’s third acquisition, following the purchase of AIB’s GB SME loan portfolio in 2021 and bridging finance specialist Tuscon Capital in 2024.
Named the UK's fastest growing company in 2024 and the fastest growing UK fintech ever in 2023, Alyka became profitable within three years of launch. Its flagship Business Rewards account, which offers cashback, no monthly fees and a nominated relationship manager, continues to gain popularity among established SMEs.
The Action acquisition underlines Elica's ambition to blend lending, payments and embedded finance into an integrated offering for UK small and medium-sized businesses – a segment that represents approximately a third of the UK economy.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
