Once one of Kenya’s most promising fintech startups, Lipa Later is now at a crossroads after financial struggles forced it into administration. But a bold $24.5 million bid from Nairobi-based Engage Capital may yet save the embattled Buy Now, Pay Later (BNPL) firm.
Founded in 2018, Lipa Later gained attention across East and West Africa by offering consumers a way to buy electronics, furniture, healthcare, and more—then pay in monthly installments. Its simple credit-check-free platform and partnerships with major retailers like Carrefour and Hotpoint helped it expand rapidly across Kenya, Uganda, Rwanda, and Nigeria.
But the aggressive growth came at a cost.
Mounting Losses and Missed Payrolls
By early 2025, signs of financial distress were impossible to ignore. Salaries went unpaid, supplier invoices piled up, and a hoped-for funding round collapsed. On March 24, 2025, the company was officially placed under administration. Joy Vipinchandra Bhatt of Moore JVB Consulting was appointed to oversee the company’s finances, operations, and future.
Creditors were given until April 23 to file claims, and many of Lipa Later’s merchant partners suspended operations under the platform, unsure of what would come next.
In a surprising twist, Engage Capital submitted a $24.5 million (KES 3.17 billion) acquisition proposal in May. The bid includes:
Acquisition of core assets: The Lipa Later tech platform, customer database, licenses, and intellectual property.
Exclusion of toxic assets: The deal intentionally leaves out bad loans, significantly lowering risk exposure for the acquirer.
Assumption of select liabilities: Engage Capital is willing to take on some obligations, which could mean a partial lifeline for unpaid staff and creditors.
If approved, the deal could revive Lipa Later’s stalled operations and restore a measure of trust in Kenya’s embattled startup ecosystem.
This isn’t just another startup bailout. If the rescue bid succeeds, it would mark a rare turnaround for a fintech firm under administration in Africa an ecosystem where many troubled startups simply fade away.
For Engage Capital, the acquisition offers access to Lipa Later’s proprietary tech, thousands of customers, and a well-known brand. For Lipa Later’s team, it represents a shot at redemption.
But questions remain.
Will regulators approve the deal?
Can Engage Capital reposition the brand amid negative publicity?
And will customers and partners return?
The Road Ahead
The outcome of this bid will have ripple effects far beyond Lipa Later. It could influence how investors view risk in African fintech, how founders approach scaling, and how the ecosystem handles distressed assets.
For now, Lipa Later’s future hangs in the balance somewhere between collapse and a $24.5 million second chance.
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