Kenyan buy-now-pay-later (BNPL) startup Lipa Later has raised $12 million funding from a consortium of investors to expand its operations across Africa.
The startup currently operates in Kenya, Rwanda and Uganda and plans to use the funding which is a mix of equity and debt to expand within these markets. LipaLater which was founded in 2018 also plans to use the new funding enter into enter Tanzania, Ghana and Nigeria
This new funding round attracted backing from Cauris Finance, Lateral Frontiers Ventures, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services.
“We are excited to be working with our investors as we look to grow and expand to more markets in Africa. In the next 12 months we are looking to grow and double our presence in the existing markets, even as we open in three to five new markets in Africa.” Eric Muli, the Co-Founder and CEO of Lipa Later said.
Other than the traditional offline method of buyers purchasing items in stores, Lipa Later has tapped into the rapidly growing online presence across Africa and built a unique Buy Now Pay Later option API. The API integrates into e-commerce platforms enabling merchants to sell products directly to consumers and pay for them in affordable monthly installments.
Lipa Later’s proprietary credit scoring and machine learning system enables the consumer to sign up and get a credit limit in seconds without the need for bulky documentation and a long lengthy credit approval process.
Lipa Later boasts a wide array of exclusive merchants and world-renowned brands such as Carrefour, Apple, Tecno, and Samsung.