In a remarkable turnaround, Kenyan e-commerce start-up Sky Garden has resurrected from the brink of closure, thanks to a strategic Ksh.250 million ($1.6 million) investment by tech credit platform Lipa Later. The acquisition, completed in December 2022, not only breathed new life into Sky Garden but positioned it for ambitious growth, aiming to connect with 100,000 merchants in the coming year.
Lipa Later, a key player in the Buy Now Pay Later (BNPL) service, injected fresh capital into Sky Garden, signaling a significant transformation. The revitalized platform now boasts integrated payment solutions, logistic support, marketing tools, and crucial business insights, aligning itself with the vision of becoming a commerce catalyst for businesses and communities across Africa.
Under the stewardship of Lipa Later, Sky Garden’s enhanced platform offers merchants a comprehensive suite of services, including access to financing, real-time transaction monitoring, direct bill payments, seamless deposits and withdrawals to M-Pesa or bank accounts, and the novel ability to open a bank account. This holistic approach aims to empower merchants, reduce online interactions, and facilitate sales from anywhere at any time.
The synergy between Lipa Later’s BNPL service and Sky Garden’s Amazon-style marketplace sets the stage for a customer-centric approach. Shoppers can now utilize Lipa Later’s flexible and affordable monthly instalment payment plan to purchase items, opening up new avenues for increased sales and customer engagement.
Notably, Sky Garden is expanding its horizons by venturing into social commerce. The platform introduces features that enable shoppers to discover, share, and make purchases directly within their social networks. This strategic move aligns with the evolving landscape of e-commerce, tapping into the power of social connections for both consumers and merchants.
Lipa Later Group CEO, Eric Muli, emphasized the group’s broader vision, stating, “Our group vision is to be a commerce catalyst for businesses and communities across Africa. We firmly believe that local ownership and operation are essential in understanding the needs of our people, contributing to the prosperity of our nation, and forging a true connection with our community.”
Sky Garden’s success story is particularly poignant considering its near closure in October of the previous year due to insolvency. The startup faced a funding gap in September, despite having raised over $6,000,000 (Ksh.919 million) before the acquisition. Lipa Later’s timely intervention not only saved the venture but propelled it into a phase of expansion and innovation.
Lipa Later’s strategic moves, including securing approval for fundraising in the United States and closing a Ksh.500 million debt issue, demonstrate the platform’s commitment to sustainable growth and financial stability. As one of the first African companies to receive approval from the U.S. Securities and Exchange Commission (SEC), Lipa Later’s success story is intricately woven with Sky Garden’s resurgence, marking a transformative chapter in the landscape of Kenyan e-commerce.