Lipa Later, a fintech that offers consumer credit and e-commerce solutions for merchants, has been placed under administration two years after it acquired struggling e-commerce platform Sky.Garden for US$1.6 million.
- •The latest development follows months of speculation that the startup was facing financial challenges and was not meeting its obligations, including paying staff.
- •In 2023, the firm secured KSh 500 million funding in a privately placed debt issuance signifying investor interest in Kenya’s lucrative Buy Now Pay Later (BNPL) space.
- •It planned on raising an additional KSh2 Billion in both Equity and Debt to spur growth further.
“This capital infusion will support our continued growth and expansion plans, enabling us to reach more customers and businesses nationwide,” its CEO Eric Muli, said after the 2023 debt round.
According to a public notice Joy Vipinchandra Bhatt of Moore JVB Consulting has been appointed administrator taking control over the business, assets, and management of the affairs of the company.
“By virtue of the administration, the powers of the directors of the company in terms of dealing with or transacting with the company’s assets have ceased, unless with express permission of the administrator,” reads the notice.
“Moving forward, all matters, operational or otherwise, pertaining the affairs of the company shall be taken to the administrator or authorised representatives.”
The firm has been put on administration at a time when the buy now, pay later (BNPL) payment market in Kenya is expected to grow by 13.6% on annual basis to reach US$1.18 billion in 2025.
By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 1.03 billion to approximately USD 1.86 billion.
