Allica's boss Richard Davies is a former Revolut and OakNorth executive.

Allica Bank is set to announce a fresh acquisition as the firm looks to beef up its lending capacity for small businesses , City AM can reveal.

The digital bank has snapped up London-based fintech Kriya, which specialises in embedded finance and business loans.

The takeover, set to be announced on Wednesday, marks Allica’s third acquisition after integrating Allied Irish Bank’s SME portfolio and purchasing bridging finance specialist Tuscan Capital in 2024.

The newest deal comes as Allica targets £1bn in working capital finance – which refers to short-term, quick-access funding, such as loans and credit lines – over the next three years.

Challenger banks such as Allica have dominated the small and medium

See Full Page