By Mark Kawalya
Kenyan fintech company Lipa Later recently declared the successful completion of a $3.4 million debt fundraising exercise. This financing will be used to develop and improve the firm’s operations. In 2018, Eric Muli and Michael Maina created the fintech start-up, a lending platform that offers post-paid payments to online retailers. In Kenya, Uganda, and Rwanda, the Buy Now, Pay Later (BNPL) service collaborates with merchants to let customers pay in installments.
The group CEO of Lipa Later, Eric Muli, commented, “We are excited about the opportunities this funding has unlocked for merchants and consumers. We would like to extend our heartfelt gratitude to the investors and supporters for their unwavering trust in our vision. 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 serve 100,000 SMEs.”
Rubicon Landing, a transaction consulting company acting as the transaction adviser, offered valuable support, while KN Law, acting as the legal advisor, provided crucial assistance to the financing endeavor.
Lipa later revealed that it had raised a separate $1.2 million from retail investors, valuing the business at $30 million. Additionally, the business disclosed that the Securities and Exchange Commission (SEC) of the United States had given it the go-ahead to raise money from the general public in the country, making it one of the first African businesses to do so.
Through Republic, a global financial technology company that enables people to engage in numerous opportunities from anywhere, investors have the option to join LipaLater’s fundraising round from around the world.
By using Republic’s platform, LipaLater was not only given approval but was also given access to a global network of investors looking to support promising enterprises. Lipa Later currently works with more than 35,000 merchants and has a customer base of around 350,000.
“The Kenyan market has tremendous potential for financial innovation, and we are dedicated to contributing significantly to determining how financing will develop in Kenya. We are certain that we can accomplish our goal of increasing financing accessibility and inclusivity for all with the help of our stakeholders and investors, the business added.