Engage Capital Offers $24.5M to Acquire Collapsed Fintech Lipa Later

STARTUP VENTURE CAPITALJuly 16, 2025 at 11:51 AM UTC

TLDR

Engage Capital, a Kenya-focused VC firm, has submitted a $24.5 million offer to acquire key assets of Lipa Later
The deal would involve acquiring Lipa Later’s technology platform, customer base, intellectual property, and licenses
Lipa Later raised $16.6 million over 10 funding rounds, including a $12 million seed round led by Cauris and Lateral Frontiers in 2022

Engage Capital, a Kenya-focused VC firm, has submitted a $24.5 million offer to acquire key assets of Lipa Later, the once high-flying buy-now-pay-later (BNPL) startup that entered administration in March 2025 after failing to secure fresh funding.

According to sources cited by TechCabal, the deal, outlined in a letter of intent (LOI), would involve acquiring Lipa Later’s technology platform, customer base, intellectual property, and licenses, while also taking on certain liabilities, excluding bad loans.

The proposed structure includes:

Full acquisition of operational assets
Clearance of select company debts
Assumption of the loan book and ongoing operations

Founded in 2018 by Eric Muli and Michael Maina, Lipa Later raised $16.6 million over 10 funding rounds, including a $12 million seed round led by Cauris and Lateral Frontiers in 2022. Despite early momentum and regional expansion into Uganda and Rwanda, the startup ran out of cash in 2024, unable to raise additional capital or meet payroll obligations.

Should Engage Capital close the deal, it would inherit valuable infrastructure and licensing, potentially relaunching a leaner version of the business or integrating it into a broader fintech play. Either outcome would signal a rare second chance for a once-hyped East African startup—and a moment of validation for Kenya’s maturing venture ecosystem.

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Key Takeaways

Engage Capital’s bid could mark a rare turnaround for a Kenyan tech startup under administration. If successful, the deal would salvage one of the country’s most recognizable fintech brands—and offer a blueprint for distressed asset recovery in African venture markets often marked by terminal insolvency. The potential acquisition is also a strategic bet on the BNPL model, which, while battered by funding constraints and risk concerns globally, still holds promise in underbanked markets like East Africa. Lipa Later’s core value proposition—consumer credit access for retail purchases—remains relevant in economies with rising smartphone adoption and constrained disposable income. Sources confirm Moore JVB Consulting, the court-appointed administrator, has been actively engaging multiple parties. While Lipa Later co-founder Eric Muli confirmed talks are ongoing, he declined to comment further due to legal proceedings.

Startups

Engage Capital

Lipa Later

Kenya

Fintech

Acquisition