Kenyan fintech Lipa Later raises $3.4m in debt funding

STARTUP VENTURE CAPITALSeptember 29, 2023 at 3:42 PM UTC

Kenya's fintech platform, Lipa Later, has successfully secured KES 500 million (US$3.4 million) through a privately-placed debt issuance. The funding will be utilized to facilitate the expansion of its services.

Founded in 2018, Lipa Later is committed to empowering African businesses by providing a centralized and fully integrated platform for e-commerce, financial inclusion, and shopping. The startup specializes in offering consumer credit, working capital, and e-commerce solutions for merchants.

The fundraising received support from Rubicon Landing, a respected transaction advisory firm serving as transaction advisors, and KN Law, a prominent legal advisory firm acting as legal advisors. Lipa Later views this successful fundraising as a testament to its growth trajectory and its trusted position within the Kenyan financial ecosystem. It will enable the company to enhance its offerings and better serve its customer base.

Key Takeaways

The 2021 FinAccess household survey highlighted Kenya's impressive progress in achieving financial inclusion on a national scale, with approximately 84% of the adult population now having access to formal financial services. However, it is important to note that a substantial portion of the population still remains without access to these services. This gap presents a valuable opportunity for startups like Lipa Later to play a pivotal role and leverage the widespread availability of mobile money services to further expand financial inclusion and accessibility for those who have yet to benefit from formal financial services.