Lipa Later Placed Under Administration Amid Financial and Legal Challenges

Lipa Later, a Kenyan Buy Now, Pay Later (BNPL) company, has been placed under administration due to financial difficulties. Creditors have until April 23, 2025, to submit their claims to the appointed administrator, who is engaging with key stakeholders to achieve the best possible outcome for the company.

Financial Struggles and Legal Challenges

The financial troubles facing Lipa Later have been unfolding over time. In December 2024, Africa Foresight Group Limited filed an insolvency notice against the company, seeking payment of USD 13,516 for services rendered. The court reviewed arguments from both parties regarding the statutory demand and the alleged breach of contract, adding to Lipa Later’s mounting legal and financial pressures.

Prior to its placement under administration, the company had been actively raising capital to expand its operations. In September 2023, Lipa Later successfully closed a KES 500 million privately placed debt issuance, strengthening its efforts to provide innovative financing solutions. At the time, the company had also announced plans to raise an additional KES 2 billion in equity and debt to support its growth and enhance financial inclusion across urban Africa.

Expansion Efforts and Key Partnerships

Despite its current financial challenges, Lipa Later has made several strategic moves in recent years. One of its major acquisitions was Sky.Garden, an e-commerce platform, which it purchased in December 2022. The acquisition allowed Lipa Later to expand its BNPL model by integrating Sky.Garden’s digital marketplace, giving customers access to a wide range of sellers and installment-based payment options.

In August 2023, Lipa Later also partnered with Mastercard to accelerate the expansion of BNPL payment services across Africa. This collaboration aimed to unlock new opportunities for consumers and merchants by providing more flexible BNPL solutions and enhancing payment infrastructure in the region.

Retail Collaborations and Consumer Offerings

Lipa Later has worked with multiple retailers to bring BNPL solutions to customers. In November 2021, the company collaborated with Carrefour to launch LipaVismart, an installment payment plan that allows customers to buy Carrefour products, including electronics, furniture, home appliances, and everyday consumer goods, and pay for them over time.

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Beyond partnerships, Lipa Later has also focused on enhancing its workplace policies. In March 2022, the company announced a six-month paid maternity leave for all employees, making it one of the few startups in Kenya to implement such a policy. This move was part of its broader initiative to create a more inclusive and gender-balanced work environment.

The Road Ahead

Lipa Later’s journey, from securing major investments and forming strategic partnerships to facing financial distress and legal battles, highlights the volatility of the fintech sector. With the company now under administration, stakeholders will be watching closely to see whether it can restructure its operations, settle debts, and regain stability.

For now, creditors are expected to submit their claims before the April 23, 2025, deadline as the appointed administrator works to determine the next steps for the once-prominent BNPL startup.