Lipa Later

Lipa Later was a Kenyan fintech startup that provided buy-now-pay-later services, founded in 2018 by Eric Muli and Michael Maina.^3781518 The company raised $16.6 million across multiple rounds and operated in Kenya, Rwanda, Uganda, and Nigeria, serving nearly 1 million customers at its peak.⁴⁶⁸ In March 2025, Lipa Later was placed under administration due to funding shortages and repayment collapse, with Joy Vipinchandra Bhatt appointed as administrator.²⁹¹⁸

Timeline

Money raised

Lipa Later raised $16.6 million across multiple rounds.⁴ In January 2022, Lipa Later raised $12 million in pre-Series A funding from a consortium including Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments, and Axian Financial Services.⁶⁸ In September 2023, Lipa Later secured $3.4 million in debt funding.⁷⁹ Lipa Later announced a separate fundraising of $1.2 million from retail investors, valuing the company at $30 million.⁷ Lipa Later acquired Sky.Garden for KES 250 million ($1.9 million) in December 2023.⁹ In 2024, Lipa Later failed to raise additional capital.⁹ In July 2025, Engage Capital offered $24.5 million to acquire Lipa Later, and Advance Global Capital offered a $5 million loan facility.¹⁸

Investors named in the sources: Cauris Finance⁸¹⁸, Lateral Frontiers VC⁸¹⁸, GreenHouse Capital⁸¹⁸, SOSV IV LLC⁸¹⁸, Sayani Investments⁸¹⁸, Axian Financial Services⁸¹⁸, Uncovered Fund⁸¹⁸, Republic⁵⁷.

What happened

Lipa Later was founded in 2018 by Eric Muli and Michael Maina as a Kenyan fintech startup providing buy-now-pay-later services.⁷⁸¹⁵¹⁸ The company partnered with retailers to allow shoppers to pay in installments for products such as electronics and furniture.⁷⁸¹⁵ Lipa Later operated in Kenya, Uganda, Rwanda, and later Nigeria.⁶⁷⁸¹⁸ The company built a proprietary credit scoring and machine learning system that allowed consumers to sign up and get a credit limit almost instantly.⁸ Lipa Later also built a BNPL API that integrated into e-commerce platforms, enabling merchants to sell products directly to consumers.⁸

In 2020, Lipa Later received an undisclosed investment from Tokyo-headquartered Uncovered Fund.⁸ In January 2022, Lipa Later raised $12 million in pre-Series A funding led by Cauris Finance, Lateral Frontiers VC, and GreenHouse Capital.⁶⁸ The funding was intended to expand to new markets including Tanzania, Ghana, and Nigeria, and to double presence in existing markets.⁸ Lipa Later had exclusive partnerships with retailers such as Carrefour, allowing customers to pay monthly installments with an interest rate of about 2.3%.⁸ In December 2022, Lipa Later acquired the e-commerce platform Sky.Garden, which was on the brink of closure following insolvency.¹⁷¹⁸

In September 2023, Lipa Later secured $3.4 million in debt funding to expand and enhance its operations.⁷⁹ The company also announced approval to raise funds from the general public in the United States through Republic, becoming one of the first African companies to secure SEC approval.⁷¹⁵ At its peak, Lipa Later issued $100 million in credit, served nearly 1 million customers, and employed over 200 people across Kenya, Rwanda, Uganda, and Nigeria.⁴ The company raised a total of $16.6 million across multiple rounds.⁴ In December 2023, Lipa Later acquired Sky.Garden for KES 250 million ($1.9 million).⁹

The acquisition of Sky.Garden raised questions about Lipa Later's financial stability.⁹ In 2024, Lipa Later failed to raise additional capital amid tighter investor sentiment.⁹ African startup funding collapsed in the first half of 2024, with only $780 million raised continent-wide, down 57% year-on-year.⁴ The company's loan book suffered a repayment collapse, with founder Eric Muli stating that lending Sh1 million resulted in only Sh100,000 coming back instead of Sh3 million.⁴ Lipa Later borrowed investor funds in dollars and lent in shillings, leading to foreign exchange losses when the shilling depreciated from Sh100 to Sh170 per dollar.⁴

Employees and suppliers reported non-payment since late 2024.⁹ In December 2024, Kenya's High Court ruled against Lipa Later in a lawsuit by London-based Africa Foresight Group over a $13,516 unpaid consultancy fee.⁹ The court cited internal emails admitting the debt.⁹ On March 24, 2025, Lipa Later was placed under administration.⁹¹⁸ Joy Vipinchandra Bhatt of Moore JVB Consulting LLP was appointed administrator, removing the company's directors from control of operations.⁹¹⁸

Creditors were directed to submit claims by April 23, 2025.⁹¹⁸ In March 2024, court documents revealed Lipa Later had accused a former employee of jumping ship to competitor Craft Silicon Kenya.¹³ In April 2025, a court urged the investor to resolve the dispute via arbitration.¹⁴ In July 2025, Engage Capital made a $24.5 million offer to acquire Lipa Later's fintech platform, customer base, intellectual property, and loan book.¹⁸ Advance Global Capital offered a $5 million loan term facility.¹⁸

Founder Eric Muli confirmed that acquisition talks began before March 2025.¹⁸ Muli stated that the company's investors' needs were not aligned with the company's needs, pressuring changes that hurt the model.⁴ Muli admitted that gaps in his own understanding became visible only in hindsight, as he started the company at age 23.⁴ Muli is building a new venture called MRE Real Estate, backed by his previous investors.⁴

Legal outcomes

• filedAfrica Foresight Group sued Lipa Later over a $13,516 unpaid consultancy fee; Kenya's High Court ruled against Lipa Later in December 2024.⁹
• pendingIn April 2025, a court urged the investor to resolve the dispute via arbitration.¹⁴
• filedFrom Here Ventures Fund 1, GP filed a civil case against Lipa Later Limited and another party (Civil Case E523 of 2024).¹²

Where the founders are now

Eric Muli is building a new venture called MRE Real Estate, backed by his previous investors.⁴ Eric Muli publicly explained how Lipa Later collapsed, including the repayment collapse and foreign exchange losses.⁴

Lessons, as others put them

"You find that you are lending Sh1 million, but coming back as Sh100,000 instead of Sh3 million."Eric Muli⁴

Sources

2. Lipa Later Shuts Down, kenyanwallstreet.com, Mar 26, 20
3. Lipa Later | Startup Graveyard, startupgraveyard.africa
4. Lending Sh1 Million, Getting Back Sh100,000: The Lipa Later Autopsy Every African Founder Should Read – Business Week Afrika (B.W.A), businessweekafrika.com
5. Lipa Later, republic.com, Oct 4, 202
6. Kenyan BNPL startup Lipa Later secures $12m funding to ..., africabusinesscommunities.com
7. Lipa Later Secures $3.4 Million In Debt Funding, CIO Africa, 2023-09-13
8. Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million | TechCrunch, TechCrunch, 2022-01-13
9. Dabafinance - Lipa Later Enters Administration After Failed Funding, Mounting Debt, Dabafinance, Mar 28, 20
11. Lipa Later attracts $24.5m lifeline offers amid financial crisis, ICT Journal Africa, 2025-07-15
12. From Here Ventures Fund 1, GP v Lipa Later Limited & ..., new.kenyalaw.org, May 26, 20
13. Kenya's Lipa Later enters administration three months after ..., techpoint.africa, Mar 28, 20
14. Reprieve for Lipa Later as Court Urges Investor to Resolve ..., kenyanwallstreet.com, Apr 1, 202
15. Kenyan fintech start-up Lipa Later raises Ksh.500 million in debt, Citizen Digital, 2023-09-12
17. Lipa Later, SOSV
18. Engage Capital tables Ksh.3B bid for troubled tech credit start-up Lipa Later, Citizen Digital, 2025-07-16

How this case file was put together

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