Lipa Later, a prominent Kenyan fintech startup, has successfully secured $5 million in a private debt issuance. The company intends to allocate this funding towards its ambitious plans for growth and expansion.
Eric Muli, Group CEO at Lipa Later, expressed the significance of these funds, stating, “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. We aim to bank 100,000 SMEs.”
In addition to this recent achievement, Lipa Later has disclosed its intention to raise a substantial $20 million, encompassing both equity and debt, with the goal of propelling its growth initiatives. Muli emphasized their determination to unlock a remarkable $500 billion financial inclusion opportunity in urban Africa.
The successful raise was facilitated with the support of Rubicon Landing, a trusted transaction advisory firm, acting as the transaction advisor, and KN Law, serving as the Legal Advisors.
Notably, Lipa Later had previously announced a fundraising effort of $1.2 million from retail investors at a valuation of $30 million earlier this week. This capital injection follows their acquisition of Sky.Garden, a Kenyan e-commerce startup in December, for which Muli had indicated a requirement of approximately $6 million to operate the venture.
Before this recent acquisition, the fintech had secured $12 million in pre-Series A funding to fuel its expansion into existing and new markets. However, the company’s latest funding announcement primarily emphasized its growth within Kenya.
Furthermore, in August, Lipa Later entered into a strategic partnership with Mastercard to enhance financial inclusion and expand Buy Now, Pay Later (BNPL) solutions in Africa. This initiative is set to commence in Kenya and later expand to Rwanda, Uganda, and Nigeria.
“The Kenyan market holds immense potential for financial innovation, and we are committed to playing a significant role in shaping the future of financing in Kenya. With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” the company stated. Currently, Lipa Later boasts a customer base of approximately 350,000 consumers and serves over 35,000 merchants.