Kenyan BNPL startup Lipa Later eyes extra African markets after elevating $12 million – •

Lipa Later, a Kenyan tech-led shopper credit score platform, is planning to increase to new markets in Africa after elevating $12 million in pre-Collection A funding.

The fairness and debt funding spherical was led by Cauris Finance, Lateral Frontiers VC (certainly one of Lipa Later’s first traders) and GreenHouse Capital, with participation from SOSV IV LLC, Sayani Investments and Axian Monetary Providers.

The startup, a purchase now, pay later (BNPL) firm based in 2018, is now planning to enter Tanzania, Ghana and Nigeria, and increase in its current markets, that are Kenya, Uganda and Rwanda.

“We’re excited to be working with our traders as we glance to develop and increase to extra markets in Africa. Within the subsequent 12 months, we wish to develop and double our presence within the current markets, at the same time as we open in three to 5 new markets in Africa,” mentioned Lipa Later co-founder and CEO Eric Muli.

Commenting about this newest funding spherical Samakab Hashi, associate at Lateral Frontiers VC mentioned, “This newest spherical of funding leaves them effectively positioned to increase their product providing and takes Lipa Later one step nearer to being the dominant Purchase-Now-Pay-Later participant on the continent.”

Lipa Later has unique partnerships with retailers throughout these markets permitting buyers to pay for merchandise in installments. For example, Lipa Later’s partnership with French retailer Carrefour (which has a regional presence) permits clients to pay for gadgets together with furnishings, electronics and even perishables in month-to-month installments.

Prospects pay a month-to-month rate of interest (about 2.3% within the case of Carrefour) on the credit score prolonged to them. The startup is planning to forge extra partnerships with retailers in its plan to cowl extra nations throughout Africa.

(Proper to Left) Franck Moreau, nation supervisor – Carrefour East Africa, and Eric Muli, CEO Lipa Later, marking the roll out of the LipaVismart product powered by Lipa Later. Picture Credit: Lipa Later.

“Lipa Later just isn’t solely altering the patron credit score panorama throughout Africa, which so far has been largely inaccessible for many, but additionally catalyzing the way forward for buying, e-commerce and funds. They’ve accomplished this in a really product and customer-led means that advantages each retailers and customers, and has confirmed to be extremely scalable throughout a number of markets,” mentioned GreenHouse Capital associate Ruby Nimkar.

Lipa Later’s proprietary credit score scoring and machine studying system permits customers to enroll and get a credit score restrict nearly immediately. The startup has additionally constructed a BNPL API that integrates into e-commerce platforms that allows retailers to promote merchandise on to customers and makes it doable for customers to remit month-to-month installments for gadgets bought.

The brand new funding provides on to an undisclosed 2020 funding by Tokyo-headquartered Uncovered Fund, which invests in early- and seed-stage startups in Africa. Lipa Later was amongst 5 startups that obtained the funding.

Lipa Later is among the many main gamers in Kenya’s BNPL market, the place it competes with Aspira, Miti, Flexpay Applied sciences and Julla. Based on this 2021 survey about Kenya, the BNPL cost business within the nation has skilled a powerful development owing to a fast e-commerce penetration, and the consequences of the financial slowdown as a result of COVID-19 pandemic. The BNPL business in Kenya is predicted to file a CAGR of 30.8% throughout 2021 to 2028. The Gross BNPL merchandise worth is predicted to achieve $589.5 million in 2028 up from $51.6 million in 2020.

In its bid to traverse Africa, the place alternatives abound as e-commerce and various credit score sources develop, Lipa Later must take care of competitors from South Africa’s Payflex (which was lately acquired by Australian BNPL Zip) and PayJustNow, and Nigeria’s PayQart and Carbon Zero.


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