Lipa Later, a prominent Kenyan fintech startup, has successfully relaunched Sky.Garden, following its acquisition a year ago. With a reported investment of $1.6 million, the revived Sky.Garden will serve as a catalyst for commerce, offering a comprehensive platform for merchants and shoppers alike.
As a subsidiary of Lipa Later, Sky.Garden now provides merchants with a suite of financial services, including access to financing, real-time transaction monitoring, direct bill payments, and seamless deposits and withdrawals to M-Pesa or bank accounts. Additionally, the platform offers the convenience of opening a bank account. For shoppers, the e-commerce marketplace allows direct purchases of a wide array of items.
Eric Muli, CEO at Lipa Later, highlighted the group’s vision to be a pivotal force in commerce across Africa. “Local ownership and operation are essential in understanding the needs of our people, contributing to the prosperity of our nation, and forging a true connection with our community,” he emphasized.
Sky.Garden faced a challenging period in September 2022 when it announced the decision to cease operations due to difficulties in securing additional funding. Despite efforts to engage with investors and prevent closure, the company ultimately found a lifeline through Lipa Later Group’s acquisition, marking a significant shift in ownership.
Muli explained that the acquisition aligns with Lipa Later’s goal of establishing an end-to-end avenue connecting merchants to customers. “Sky.Garden has done an incredible job and checks all those boxes. This acquisition has greatly accelerated our plans of redefining the shopping experience for consumers,” he stated.
The financial requirements for Sky.Garden’s revival were estimated at $6 million, and since the acquisition, Lipa Later has explored diverse funding sources, including debt and crowdfunding. In September, Lipa Later successfully secured $5 million in a privately placed debt issuance, enabling further investments in technology and infrastructure to enhance financing solutions for customers.
Prior to this, Lipa Later turned to Republic, a crowdfunding platform, to raise $1.2 million from retail investors at a valuation of $30 million. The crowdfunding round concluded on October 29, 2023, with Lipa Later raising $70,177 from 84 investors.
“We are excited about the opportunities this funding has unlocked for merchants and consumers,” expressed Muli. The Sky.Garden marketplace is now live and is currently offering special discounts for the Yuletide season, signaling a promising revival in Kenya’s e-commerce landscape.
