Ailing fintech firm Lipa Later Limited, is drawing renewed investor interest as competing proposals emerge to salvage and restructure the company’s operations and assets.
- •The most advanced of these is a KSh 3.2 billion non-binding acquisition offer from Engage Capital Ltd. — a Canada-based financial services firm — which aims to acquire the company’s core assets, customer base, intellectual property, and performing loan book.
- •The deal, formalized in a Letter of Intent dated 16th May 2025, is contingent on due diligence, regulatory approvals, creditor cooperation, and the Fintecexecution of a binding agreement within 60 days.
- •Engage Capital, which specializes in complex financial restructurings and cross-border transactions, intends to pay 10% of the offer into an escrow account upon signing of a definitive agreement, with the balance due at closing.
Meanwhile, Advance Global Capital (AGC) — a London-based finance firm — is proposing a KSh 646 million facility, structured as a 36-month loan tied exclusively to Lipa Later’s receivables. The initial tranche of KSh 387.6 million would be disbursed immediately, with an additional KSh 258 million scheduled a year later. Unlike Engage Capital’s full buyout, AGC’s facility excludes the firm’s consumer lending operations and is intended to fund regional expansion into Uganda and Rwanda.
A third, less-publicized proposal has reportedly been tabled by a Nairobi-based financial consultancy firm, offering KSh 2.5 billion for full acquisition. However, details of this offer remain scant.
Lipa Later, once a fast-growing player in the Buy Now Pay Later (BNPL) sector, was placed under administration in March after failing to meet operational obligations and experiencing liquidity constraints. The appointment of Joy Vipinchandra Bhatt of Moore JVB Consulting as administrator effectively transferred control of the firm’s assets and management to the administrator’s office.
Adding to the complexity, Lipa Later is currently embroiled in an arbitration dispute with Growth Studio Ventures, a venture capital fund seeking repayment of US$212,125 tied to two investment agreements. Although Growth Studio initially sued in court, the High Court stayed the case and referred it to arbitration, upholding the validity of the arbitration clause in the contracts. Lipa Later has contested both the sums and the interest terms, claiming the figures are inflated and the agreed 30% per annum rate is excessive.
The emergence of three lifeline offers underscores the strategic value of Lipa Later’s assets, even as its business model faces stress. The Kenyan BNPL market remains attractive, projected to grow by 13.6% annually and reach USD 1.18 billion in 2025, with room for further expansion by 2030, according to Research And Markets.
