Lipa Later has received KSh 1.36 billion in funding to expand within its current markets of Kenya, Uganda and Rwanda The funding, which is a mix of equity and debt, will also help the company take its services to new markets, including Nigeria, Ghana and Tanzania The firm’s investors expect the new round of investment to take the startup a step closer to being the dominant Buy-Now-Pay-Later player in Africa
Buy-no-pay-later platform Lipa Later has raised KSh 1.36 billion from a group of investors to expand within its current markets of Kenya, Rwanda and Uganda.
The funding, a mix of equity and debt, will also help the company take its services to new markets, including Nigeria, Ghana and Tanzania.
Eric Muli, the Co-Founder and CEO of Lipa Later, said the firm looks forward to working with the new investors as they look to grow and expand to more markets in Africa.
The Kenyan-founded company received investment from investors, among them Cauris Finance, Lateral Frontiers Ventures, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services. Lateral Frontiers Ventures partner Samakab Hashi said the new round of investment would take the startup a step closer to being the dominant Buy-Now-Pay-Later player on the Continent.
Lipa Later uses a unique Buy Now Pay Later option API that integrates into e-commerce platforms. The system enables merchants to sell products directly to consumers and pay for them in affordable monthly instalments.
Cutting on time The company uses a credit scoring and machine learning system that allows consumers to sign up and get a credit limit in seconds with no bulky documentation and a long lengthy credit approval process. “With formal credit available to only a tiny minority in Lipa Later’s target markets, we are excited to be supporting Lipa Later and its unique capabilities in bolstering consumer credit in the region,” said Azer Songnaba the Co-Founder and Chief Investment Officer of Cauris.
