Lipa Later, a Kenyan buy-now-pay-later (BNPL) firm, has acquired US $12 million in funding from a group of investors to enable it to extend its coverage in existing markets and enter new ones.
Lipa Later, which was founded in 2018, uses data analytics to give clients quick and inexpensive finance. Its patented credit-scoring and machine learning engine allow customers to sign up and receive a credit limit in seconds, without the need for voluminous documents or a long approval procedure.
The firm had previously grown into Uganda and Rwanda following a financing round at the beginning of last year, but it has now disclosed the extra US $12 million in the capital, gained late last year, to enable it to expand into new countries such as Nigeria, Ghana, and Tanzania. It will also enable Lipa Later to provide its BNPL services to its large present customer base.
Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV, Sayani Investments, and Axian Financial Services provided the money, which is a mix of stock and debt.
Lipa Later, according to Ruby Nimkar, a partner at GreenHouse Capital, is transforming the consumer finance market in Africa, which has been mostly unavailable for most.
“We are excited to be working with our investors as we look to grow and expand to more markets in Africa. In the next 12 months we are looking to grow and double our presence in the existing markets, even as we open in three to five new markets in Africa,” said Eric Muli, co-founder, and CEO of Lipa Later.
“They’ve done this in a true product and customer-led way that benefits both merchants and consumers and has proven to be incredibly scalable across multiple markets,” she said.
