Lipa Later, a Kenyan fintech startup has secured $5 million in a privately placed debt issuance. The fintech plans to use the funding for its growth and expansion plans.
"These funds have enabled us to further invest in technology and infrastructure to make our financing solutions even more accessible and convenient for our customers," according to Eric Muli, Group CEO at Lipa Later. “We aim to bank 100,000 SMEs.”
The Kenyan fintech also disclosed that it plans to raise $20 million in both equity and debt “to spur our growth further as we work towards unlocking a $500 billion financial inclusion opportunity in urban Africa”.
This raise was supported by Rubicon Landing, a transaction advisory firm, acting as the transaction advisor, and KN Law as the Legal Advisors.
Earlier this week, we reported that Lipa Later is raising $1.2 million from retail investors at a $30 million valuation. When the fintech acquired Sky.Garden, a Kenyan e-commerce startup last December, Muli said they needed about $6 million to operate the venture.
Before the acquisition, the fintech raised $12 million pre-Series A to expand in its existing markets and new markets. However, the statement that announced this latest funding focused more on the startup's growth in Kenya. In August, Mastercard and Lipa Later announced a strategic partnership to drive financial inclusion and expand Buy Now, Pay Later (BNPL) solutions in Africa, starting with Kenya and expanding to Rwanda, Uganda, and Nigeria.
“The Kenyan market holds immense potential for financial innovation, and we are committed to playing a significant role in shaping the future of financing in Kenya. With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” the company said. Currently, Lipa Later has about 350,000 consumers and over 35,000 merchants.