lipa later

Kenyan consumer credit tech startup Lipa Later has raised $12 million in funding from a consortium of investors to expand its operations across Africa.

The startup which currently operates in Kenya, Rwanda, and Uganda plans to use the funding which is a mix of equity and debt to expand within these markets.

LipaLater which began in 2016 and is run by CEO Eric Muliwas also plans to use the new funding to expand to Tanzania, Ghana, and Nigeria

Also Read: Credit Startup Lipa Later Launches in Uganda

This new funding round attracted backing from Cauris Finance, Lateral Frontiers Ventures, GreenHouse Capital, SOSV IV LLC, Sayani Investments, and Axian Financial Services.

“We are excited to be working with our investors as we look to grow and expand to more markets in Africa. In the next 12 months, we are looking to grow and double our presence in the existing markets, even as we open in three to five new markets in Africa.” Eric Muli, the Co-Founder, and CEO of Lipa Later said.

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 Buy Now Pay Later option API. The API integrates into e-commerce platforms enabling merchants to sell products directly to consumers and pay for them in affordable monthly installments.

Lipa Later’s proprietary credit scoring and machine learning system enable the consumer to sign up and get a credit limit in seconds without the need for bulky documentation and a long lengthy credit approval process.

Lipa Later boasts a wide array of exclusive merchants and world-renowned brands such as Carrefour, Apple, Tecno, and Samsung.

Kenya’s BNPL market is dominated by Lipa Later, Aspira, Miti, Flexpay Technologies, and Julla. E-commerce penetration and the economic downturn caused by the COVID-19 pandemic have both contributed to the rise of Kenya’s BNPL payment business, according to a poll conducted in 2021. Between 2021 and 2028, the BNPL industry in Kenya is expected to grow at a rate of 30.8%. There will be $589.5 million worth of BNPL goods in 2028, up from $51.6 million in 2020.

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Nigel Jr.
• Consumer Tech • Startups • Business • DeFi •

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