The buy-now-pay later (BNPL), startup Lipa Later from Kenya has raised US$12 Million from a group of investors. This will allow it to expand its coverage in existing markets.
Lipa later was established in 2018. It uses data analytics to offer consumers easy and affordable credit. The company’s credit scoring and machine learning systems allow consumers to sign up in seconds and receive a credit limit within minutes. There is no need for lengthy approvals.
After a funding round in the beginning of last year, the startup had already expanded to Uganda and Rwanda. However, it announced that it would receive an additional US$12,000,000 late last year to expand its current markets and reach new markets such as Nigeria and Ghana. It will allow Lipa Later, which has a large current consumer base to offer its BNPL services, to do so.
Cauris Finance and Lateral Frontiers VC secured the funding. GreenHouse Capital and SOSV also contributed to the financing. Axian Financial Services was involved in the financial services.
“We are thrilled to be working alongside our investors as we seek to expand and grow to more African markets. Eric Muli, cofounder and CEO at Lipa Later, stated that in the next twelve months, we will look to expand and double our presence on existing markets. We also plan to open three to five new African markets.
Ruby Nimkar (partner at GreenHouse Capital) stated that Lipa Later was changing Africa’s consumer credit landscape, which has been difficult to access for many.
She said, “They have done this in truly product- and customer-led ways that benefit both merchants and customers and has proven to be extremely scalable across multiple market segments.”