Lipa Later Secures $3.4 Million in Debt Funding to Expand Operations and Drive Financial Innovation

Lipa Later, a fintech firm headquartered in Kenya, continues to demonstrate its dedication to reshaping the financing landscape. The company recently raised $3.4 million in debt funding, which will fuel its efforts to expand operations and improve its financial offerings.

Pioneering BNPL Services Across East Africa

Founded in 2018 by Eric Muli and Michael Maina, Lipa Later operates as a lending marketplace that offers Buy Now, Pay Later (BNPL) services. The company has partnered with various retailers to enable customers to make purchases through installment plans, easing access to goods and services. In addition to its operations in Kenya, Lipa Later also serves consumers and businesses in Uganda and Rwanda.

Speaking on the latest developments, Eric Muli, Group CEO of Lipa Later, expressed enthusiasm about the opportunities the new funding unlocks:

“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.”

Key Partners in Fundraising Efforts

Lipa Later’s successful fundraising was facilitated by Rubicon Landing, a transaction advisory firm, and KN Law, which provided legal advisory services.

In addition to the $3.4 million debt funding, Lipa Later recently secured $1.2 million from retail investors, bringing the company’s total valuation to $30 million. The company also announced that it had received approval from the U.S. Securities and Exchange Commission (SEC) to raise additional funds from the general public in the United States.

Expanding Global Investment Opportunities Through Republic

Lipa Later’s partnership with Republic, a global financial technology platform, offers a new avenue for international investors to support its mission. Through Republic, the company can now connect with a global community of investors interested in high-potential projects.

With a current customer base of 350,000 and 35,000 merchant partners, Lipa Later aims to continue expanding its presence in East Africa and beyond. The company is confident that the support from stakeholders and investors will help them achieve their goal of making financing more inclusive and accessible.

In a statement, the company emphasized the importance of the Kenyan market for its operations:

“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.”

With this momentum, Lipa Later is poised to solidify its position as a leading fintech firm, driving financial inclusion and empowering small and medium-sized enterprises across East Africa.