Kenyan BNPL Startup Lipa Later Raises $12M To Accelerate Expansion

Kenyan startup Lipa Later, which specializes in technology-based consumer credit, has successfully raised $12 million in pre-series A financing. Equity and debt financing saw the participation of Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services.

The funds raised will allow the startup founded in 2018 to expand into new markets in Africa, notably in Tanzania, Ghana and Nigeria, and to develop in its existing markets, namely Kenya, Uganda and Rwanda.

Eric Muli, Co-Founder and CEO of Lipa Later
Eric Muli, Co-Founder and CEO of Lipa Later

“We are delighted to be working with our investors as we seek to grow and expand into other markets in Africa. Over the next 12 months, we are looking to grow and double our presence in existing markets, even as we open three to five new markets in Africa, ”said Eric Muli, Co-Founder and CEO of Lipa Later.

Read also Kenyan Fintech Paylend Secures Major Investment.

The new funding comes on top of an undisclosed investment in 2020 by Tokyo-based Uncovered Fund, which invests in early stage and seed-stage startups in Africa. Lipa Later was among the five startups that received this funding.

The startup relies on data analytics to provide customers with convenient, affordable credit while monetizing through commissions and interest charges.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer