Troubled Kenyan fintech start-up Lipa Later is attracting major interest from investors despite its current administration woes. According to sources who spoke with Citizen Digital, at least five parties have expressed acquisition interest over the past three months, with discussions ranging from full buyouts to structured debt rescue plans.
One notable bid comes from venture capital firm Engage Capital, which has submitted a $24.5 million (Ksh.3.18 billion) letter of intent. The proposal outlines a comprehensive takeover, including Lipa Later’s fintech platform, customer base, intellectual property, regulatory licenses, outstanding liabilities, and its loan book operations.
A second offer has reportedly been tabled by Advance Global Capital, a London-based financier, in the form of a $5 million (Ksh.650 million) term loan facility. This would provide the company with some immediate relief while other options are being explored.
Lipa Later entered administration in March 2025, with Joy Bhatt of Moore JVB appointed as the administrator. Creditors were instructed to submit their claims by April 23, as part of efforts to stabilize the company and assess viable paths forward.
While no final decisions have been announced, one shareholder confirmed that the company had approved, in principle, the idea of a sale pending formal processes. CEO Eric Muli also acknowledged that acquisition talks were already underway prior to the administration filing, but declined to provide further details.
Founded in 2018 by Muli and Michael Maina, Lipa Later rose to prominence by enabling consumers to purchase goods in instalments through retail partnerships. Its footprint expanded rapidly across Kenya, Uganda, Rwanda, and Nigeria, backed by significant funding including a $12 million debt-equity round in early 2022 and a Ksh.500 million debt issue in 2023.
The company also made headlines in late 2022 after acquiring the struggling e-commerce platform Sky Garden, which was on the brink of collapse due to insolvency.
Despite its financial troubles, Lipa Later has retained backing from a strong portfolio of investors including Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments, Axian Financial Services, and Uncovered Fund.
As the fintech sector in Africa continues to evolve, the fate of Lipa Later now hinges on the decisions made by the administrator and potential investors in the coming weeks.
