Kenyan device financing startup Lipa Later, which entered administration in March 2025 due to financial distress, is now at the center of a competitive acquisition race involving at least three interested firms. The development signals a potential revival for the once-prominent fintech player in East Africa’s “Buy Now, Pay Later” (BNPL) space. Among the frontrunners is Engage Capital, a Canadian venture capital firm with a growing presence in Africa.
The firm has submitted a KES 3.17 billion (approx. $24.5 million) bid to fully acquire Lipa Later. The offer includes the acquisition of the company’s technology platform, intellectual property, operating licenses, and its entire customer base. Notably, Engage Capital has also pledged to absorb and clear all of Lipa Later’s outstanding debts, a move that could significantly ease the burden on the company’s creditors and improve the chances of a smooth transition.
A second offer has come from a Kenyan-based financial consultancy firm, whose identity remains undisclosed. This bidder has reportedly proposed a KES 2.5 billion acquisition deal. While details of the offer remain confidential, Lipa Later co-founder Eric Muli has confirmed that discussions with the local firm are ongoing. However, the structure and terms of the proposal have not been made public.
The third interested party is Advance Global Capital (AGC), a London-based financial institution. Unlike the other two, AGC is not seeking an outright acquisition. Instead, it has proposed a KES 646 million (approx. $5 million) loan facility to support Lipa Later’s operations.
The proposed financing includes an immediate $3 million disbursement, with an additional $2 million to follow after one year. The loan would be secured against Lipa Later’s receivables, but would exclude its consumer lending operations. AGC’s offer is designed to help the company stabilize its operations and support its planned expansion into Uganda and Rwanda.
According to sources close to the matter, other bids may also be under consideration. However, Joy Vipinchandra Bhatt, the court-appointed administrator from Moore JVB Consulting, has declined to comment on the ongoing negotiations.
Lipa Later, founded in 2018, was once hailed as a rising star in Kenya’s fintech sector. Its BNPL model allowed consumers to purchase electronics and other goods in installments, while retailers received upfront payments. The company expanded into Uganda and Rwanda and had ambitions to enter Nigeria and Ghana.
Despite raising over $16 million in funding from investors such as Cauris, Lateral Frontiers, Orbit Startups, and Founders Factory Africa, the company struggled to raise additional capital in 2024. This led to severe liquidity issues, unpaid salaries, and mounting supplier debts—culminating in its entry into administration.
Now, with multiple suitors expressing interest, Lipa Later may have a second chance. However, even if a deal is finalized, the company faces the challenge of rebuilding consumer trust and proving the long-term viability of its business model in a competitive and evolving fintech landscape.
