Investment firm Engage Capital proposes a bid of $24.5 million for debt-ridden Lipa Later, aiming at takeover
In a significant development for the Kenyan fintech sector, Canadian financial services firm Engage Capital has submitted a letter of intent to acquire Lipa Later, a buy-now-pay-later startup that entered administration in March 2025. If the deal, which is subject to due diligence and regulatory approvals, is concluded, it could potentially salvage what remains of Lipa Later's business model and reshape the digital credit landscape in Kenya.
Founded in 2018 by Eric Muli and Michael Maina, Lipa Later allowed consumers to buy electronics and other goods on installment while the startup paid retailers upfront. The startup, which operated in Kenya, Uganda, and Rwanda, had plans to expand into Nigeria and Ghana. However, financial challenges led to its administration in March 2025.
The proposed structure of the deal includes clearing Lipa Later's liabilities (excluding non-performing loans) and assuming a portion of the company's operations. The total consideration for the deal is $24,500,000. The offer includes the acquisition of Lipa Later's technology platform, customer base, intellectual property, and operating licenses.
Lipa Later raised $16.6 million across 10 rounds, including $12 million in seed funding in January 2022 from Cauris and Lateral Frontiers. Orbit Startups and Founders Factory Africa provided pre-seed investments to Lipa Later in 2021 and 2019, respectively. However, the startup was unable to raise new funding in 2024, leaving it unable to meet payroll or settle supplier debts.
The court-appointed administrator, Moore JVB Consulting, has been actively engaging potential investors. Apart from Engage Capital, Lipa Later has received offers from other parties, including a $5 million loan term facility from London-based Advance Global Capital. The outcome of these negotiations awaits finalization based on ongoing assessments and approvals.
Lipa Later co-founder Eric Muli has confirmed that acquisition talks are ongoing. The current status of the proposed acquisition is that it is pending due diligence and regulatory approvals. If successful, the acquisition by Engage Capital could potentially revive the company and reshape the digital credit landscape in Kenya.
[1] Engage Capital submits letter of intent to acquire Lipa Later. (n.d.). Retrieved from https://www.engagecapital.com/news/engage-capital-submits-letter-of-intent-to-acquire-lipa-later
[2] Lipa Later receives $5 million loan term facility from Advance Global Capital. (n.d.). Retrieved from https://www.lipalater.com/news/lipa-later-receives-5-million-loan-term-facility-from-advance-global-capital
[3] Lipa Later enters administration. (n.d.). Retrieved from https://www.lipalater.com/news/lipa-later-enters-administration
[4] Moore JVB Consulting appointed as administrator for Lipa Later. (n.d.). Retrieved from https://www.moorejvb.com/news/moore-jvb-consulting-appointed-as-administrator-for-lipa-later
- The Kenyan fintech sector may be reshaped by the potential acquisition of Lipa Later, a startup that offers buy-now-pay-later services, by Engage Capital, a Canadian financial services firm.
- If successful, this acquisition, subject to due diligence and regulatory approvals, could potentially salvage what remains of Lipa Later's business model and revive the company.
- Prior to entering administration in March 2025, Lipa Later had raised $16.6 million in funding across 10 rounds, with investors including Cauris, Lateral Frontiers, Orbit Startups, Founders Factory Africa, and Advance Global Capital.
- The technology platform, customer base, intellectual property, and operating licenses of Lipa Later are up for acquisition as part of Engage Capital's proposed deal, valued at $24,500,000.
