Lipa Later, a consumer credit platform from Kenya, has raised $12 million in pre-Series A funding. This capital injection, a combination of equity and debt, will fuel the company’s plans to expand its footprint across Africa.
The round was led by Cauris Finance, Lateral Frontiers VC, and GreenHouse Capital, with contributions from SOSV IV LLC, Sayani Investments, and Axian Financial Services.Founded in 2018, Lipa Later operates as a buy-now-pay-later (BNPL) service, allowing consumers to purchase goods on installment plans. Currently active in Kenya, Uganda, and Rwanda, the company now aims to establish operations in Tanzania, Ghana, and Nigeria while strengthening its presence in existing markets.
“We are excited to be working with our investors as we look to grow and expand to more markets in Africa,” said Eric Muli, Lipa Later’s co-founder and CEO. “In the next 12 months, we are looking to grow and double our presence in existing markets, even as we open in three to five new markets in Africa.”
Growing Partnerships and Product Reach
Lipa Later has established exclusive partnerships with prominent retailers, such as Carrefour, enabling customers to purchase a variety of items, from electronics to perishables, through flexible payment plans. Customers pay monthly interest rates, typically around 2.3%, on the extended credit. The company plans to form similar alliances with other merchants to drive its expansion.
Ruby Nimkar, a partner at GreenHouse Capital, highlighted Lipa Later’s impact: “They are not only changing the consumer credit landscape across Africa but also catalyzing the future of shopping, e-commerce, and payments in a scalable way.”
Technology-Driven Solutions
The platform leverages a proprietary credit-scoring and machine-learning system that allows consumers to receive credit limits almost instantly. Additionally, Lipa Later offers a BNPL API that integrates with e-commerce platforms, simplifying installment-based purchasing for merchants and consumers alike.
A Competitive Landscape
In Kenya, Lipa Later competes with other BNPL providers, including Aspira, Miti, Flexpay Technologies, and Julla. The country’s BNPL market has seen rapid growth due to increased e-commerce adoption and economic pressures from the COVID-19 pandemic. A 2021 survey projects Kenya’s BNPL market will achieve a compound annual growth rate (CAGR) of 30.8%, reaching a gross merchandise value of $589.5 million by 2028, up from $51.6 million in 2020.Across Africa, Lipa Later will face competition from other regional players such as South Africa’s Payflex and PayJustNow, as well as Nigeria’s PayQart and Carbon Zero.
Future Plans
As alternative credit options and e-commerce adoption expand across the continent, Lipa Later is positioning itself to capture a larger share of Africa’s growing consumer market. With its latest funding, the company aims to redefine access to credit and revolutionize shopping experiences in multiple emerging markets.
