Lipa Later, a leading fintech platform committed to empowering African businesses and consumers has announced the raise of $3.3 million (KES 500 million) in private debt issuance, to expand its offerings and enhance customer service.
The private debt fund was supported by key partners which include, Rubicon Landing, a transaction advisory firm, and KN Law, a leading legal advisory firm that provides legal counsel.
Lipa Later recent funding milestone underscores the remarkable journey that the startup has embarked on to enhance financial inclusion in Kenya.
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The successful capital raise serves as a testament to the fintech startup’s outstanding growth trajectory and the trust it has earned within the Kenyan financial ecosystem.
Lipa Later disclosed that the funds raised will enable the company to expand its offerings and enhance customer service further.
Speaking on the funds raised, Group CEO at Lipa Later Eric Muric said,
“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”.
Looking ahead, Lipa Later has ambitious plans to raise an additional KES 2 billion in both equity and debt. This capital infusion will catalyze the company’s growth, enabling it to reach more customers and businesses nationwide. The ultimate goal is to unlock a $500 billion financial inclusion opportunity in Urban Africa.
Founded in 2018 by Eric Muli, Lipa Later is a Kenyan-based financial technology company that offers a Buy Now, Pay Later (BNPL) service to consumers. The company enables customers to purchase products and services on credit and then pay for them over a specified period in installments.
This type of service is becoming increasingly popular globally as it allows consumers to spread the cost of their purchases over time without the need for a traditional credit card or loan.
Other than the traditional offline method of buyers purchasing items in stores, Lipa Later has tapped into the rapidly growing online presence across Africa and built a unique BNPL option API that integrates into e-commerce platforms and enables merchants to sell products directly to consumers and pay for them in affordable monthly installments.
Lipa Later partners with various merchants, both online and offline, to provide its BNPL service to consumers. Customers can choose the products they want, select Lipa Later as their payment option, and then pay for the items in installments, typically over a few months.
The startup services can be particularly appealing in regions where credit card penetration is low, and people are looking for alternative financing options.
Lipa Later is not only changing the consumer credit landscape across Africa but is also catalyzing the future of shopping, e-commerce, and payments.
The company’s goal is to make it easier for consumers to access and afford the products they need, especially those with limited access to traditional credit.