Lipa Later, a Kenyan tech-led consumer credit platform, has announced that the company has secured KES 500 million ($5 million) in debt funding to fund its expansion plans.
The funds raised were supported by Rubicon Landing as the transaction advisor and KN Law as the legal advisor.
Lipa Later Group CEO Eric Muli, said that the raise will enable the start-up to expand its local customer and business base and improve its service, making it more convenient for customers.
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In his words,
“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.”
Muli further stated that the startup will raise an additional KES 2 billion ($20 million) in equity and debt to fund its expansion plans in Kenya. Currently, Lipa Later is crowdfunding $1.2 million in exchange for equity at a valuation of $30,000,000.
With the support of stakeholders and investors, the Fintech startup is confident that it can achieve its goal of making financing more accessible and inclusive for all.
Recall that in August this year, Lipa Later and payments giant Mastercard, announced a strategic partnership to drive financial inclusion and expand Buy Now, Pay Later (BNPL) solutions in Africa, starting with Kenya and expanding to Rwanda, Uganda, and Nigeria.
The collaboration aims to bridge the gap in financial inclusion, benefiting the underbanked population and individuals with limited access to finance while enabling merchants to increase their customer base, grow sales, and offer more products and services.
Last week, Lipa Later announced that 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).
Founded in 2018 by Eric Muli and Michael Maina, the Buy Now Pay Later (BNPL) service partners with retailers to allow shoppers to pay in installments and operates in Kenya, Uganda, and Rwanda.
The startup was founded to empower African businesses to do more by enabling e-commerce, financial inclusion, and shopping on a centralized and fully integrated platform.
Lipa Later has tapped into the rapidly growing online presence across Africa to provide financial solutions to consumers by increasing their purchasing power and being an alternative payment option.
Today, the BNPL startup has made credit easily accessible to consumers, reduced friction to create seamless shopping experiences in Africa, and contributed to the growth of its retailers.
To complement the company’s vision, Lipa Later acquired Sky.Garden, an e-commerce platform built for African businesses.
Lipa Later is changing the payments landscape across Africa, which to date has been largely inaccessible for most, but also catalyzing the future of shopping, e-commerce, and payments.
Today Lipa Later serves hundreds of thousands of customers and retail businesses in Africa.