Lipa Later Secures $3.4M In Debt Funding

Lipa Later, a Kenyan fintech firm, has showcased its commitment to shaping the future of financing in Kenya. Recently, the fintech firm announced a successful raise of $3.4 million in debt funding. These funds will be directed toward expanding and enhancing its operations.

The fintech start-up, a lending marketplace, was founded in 2018 by Eric Muli and Michael Maina. It provides post-paid payments at e-commerce stores. The Buy Now Pay Later (BNPL) service partners with retailers to allow shoppers to pay in installments and operates in Kenya, Uganda, and Rwanda.

Eric Muli, the Group CEO at Lipa Later, commented, “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. We aim to serve 100,000 SMEs.”

The fundraising effort received valuable support from Rubicon Landing, a transaction advisory firm acting as the transaction advisor, and KN Law as the Legal Advisor.

Earlier this week, Lipa Later announced a separate fundraising of $1.2 million from retail investors, valuing the company at $30 million. On top of that, the company announced it had secured approval to raise funds from the general public in the United States, becoming one of the first African companies to secure the green light from the U.S. Securities and Exchange Commission (SEC).

This provided a global opportunity for investors to participate in LipaLater’s investment round through Republic, a worldwide financial technology firm that enables individuals to invest in various opportunities from anywhere. Utilizing Republic’s platform not only granted approval but also connected LipaLater to a global community of investors interested in backing promising projects. As of now, Lipa Later has amassed a customer base of 350,000 and collaborates with more than 35,000 merchants.

“The Kenyan market holds immense potential for financial innovation, and we are committed to playing a significant role in shaping the future of financing in Kenya. With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” the company said.