Buy-now-pay-later (BNPL) fintech Lipa Later has been placed under administration following undisclosed financial challenges, marking a significant setback for one of Kenya’s most well-funded startups.
Founded in 2018 by CEO Eric Muli and COO Michael Maina, Lipa Later partners with retailers to offer customers installment payment options.
However, the company’s troubles have now led to the appointment of Joy Vipinchandra Bhatt of Moore JVB as administrator, effective March 24.
What Administration Means
Administration involves an independent expert taking control of a company to assess its financial health and determine the best path forward—whether through restructuring, sale, or liquidation.
In a public notice, Bhatt stated that Lipa Later’s directors no longer have authority over company assets without her approval. She also called on creditors to submit claims by April 23.
Expansion and Funding Challenges
Lipa Later had expanded into Uganda and Rwanda and raised significant funding, including:
- $12M (Ksh.1.55B) in a 2022 pre-Series A round for African expansion.
- Ksh.500M in debt financing in 2023.
- SEC approval to raise funds from U.S. investors, a rare feat for an African startup.
- The company also acquired struggling e-commerce platform Sky Garden in 2022, but its financial woes have now led to administration.
Investor Backing
Lipa Later’s investors include Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments, Axian Financial Services, and Uncovered Fund.
The next steps for the company remain uncertain as the administrator evaluates its viability.
