In a significant development in the Kenyan tech industry, Lipa Later, a prominent credit platform, has successfully closed a substantial debt issue, raising Ksh.500 million (approximately $5 million USD). This fundraising endeavor is set to propel the innovative fintech company to new heights in the rapidly evolving world of Buy Now Pay Later (BNPL) services.
Lipa Later, founded in 2018 by Eric Muli and Michael Maina, has garnered a reputation for its pioneering approach to post-paid payments at e-commerce stores. By partnering with retailers across Kenya, Uganda, and Rwanda, the platform allows shoppers to pay for their purchases in convenient instalments. The company’s commitment to convenience and financial accessibility has earned them a loyal customer base of 350,000 consumers and collaborations with over 35,000 merchants.
Group CEO Eric Muli expressed his enthusiasm for this achievement and its implications for the company’s growth. He highlighted the importance of the newly acquired funds in expanding their local customer and business base and further enhancing the quality of their services. The debt issue was facilitated with the support of Rubicon Landing as the transaction advisor and KN Law as the legal advisor.
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Muli stated, “We are excited about the opportunities this funding has unlocked for merchants and consumers. We would like to extend our heartfelt gratitude to the investors and supporters for their unwavering trust in our vision. These funds have enabled us to further invest in technology and infrastructure to make our financing solutions even more accessible and convenient for our customers.”
In a notable development preceding this fundraising activity, Lipa Later received approval to raise funds from the general public in the United States, a groundbreaking achievement that positions them as one of the first African companies to secure approval from the U.S. Securities and Exchange Commission (SEC). This momentous approval opened the doors for global investors to participate in Lipa Later’s growth through Republic, a prominent global financial technology company known for its inclusivity in investment opportunities.
By leveraging Republic’s platform, Lipa Later has gained access to a vast network of backers eager to support promising ventures. This development is expected to play a pivotal role in the company’s expansion and innovation efforts.
It is worth noting that Lipa Later’s journey hasn’t been without strategic acquisitions. At the close of the previous year, the company acquired the e-commerce venture Sky Garden. This acquisition, conducted for an undisclosed sum, prevented Sky Garden from facing insolvency and aligns with Lipa Later’s commitment to bridging the gap between merchants and customers. It represents a significant step toward empowering both parties in the e-commerce ecosystem.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con