FlexPay Technologies is a Kenyan-based fintech firm that partners with various retailers to enable its users buy goods on lay away.
This is where users purchase a product and pay off the total cost of the product in installments over a period of time.
FlexPay is the first Kenyan company to automate the lay-away process.
They recently raised an undisclosed sum from a recent financing round by a Japanese VC-fund, which sky-rocketed its value to USD 25 million.
Flexpay’s co-founders Richard Machomba, Johnson Mwangi, Martin Maina and Dennis Mwangi founded the company in 2014, but was active in the market in 2017; a period during which they were incubates at Chandaria Business Innovation and Incubation Center (CBIIC) at Kenyatta University in Nairobi.
The company had previously raised pre-seed funding from Google, Breegafund and Techstars after being one of the few select startups to attend Techstars & Barclays and Google launchpad, world-class business accelerator programmes in Capetown and Lagos, Nigeria, in 2017 and 2018 respectively.
Richard Machomba, Flexpay’s CEO said, “We are a microPayments technology solution. Our solution allows customers to purchase a wide variety of products from offline and online stores. At 0% interest, they are able to pay in installments over time, easing the burden of putting all the money down upfront. On the other hand, we help businesses accept flexible payments from customers with ease, increase sales, and boost cash flow.”
He added that the firm has been able to serve over 200, 000 happy shoppers, and can boast of having partnered with more than 300 local retailers.
Among the retailers are giants such as Tuskys supermarket chain, Von Hotpoint and Patabay.
FlexPay’s utility is that it provides a safe, secure and most importantly, simple way for shoppers to pay and accept flexible, installment payments.
The service flies by the slogan Lipia PolePole, which translates to “pay slowly” in Swahili.
As the slogan states, its main aim is to make essential goods and services affordable to an online market.
FlexPay Managing Director said, “For traditional e-commerce merchants looking to transition into a modern-based online platform model, one of the most daunting obstacles being the high bounce rate of customers. The introduced Lipia PolePole button will no doubt aid in increasing online conversions.”
He adds, “When your customers know that they can purchase products using Lipia PolePole, then they will be less likely to pass up a chance to buy that furniture or a handbag they have been eyeing, or that refrigerator.”
Related article: SA Fintech startup, uKheshe successfully gains seed funding
He also explained that the Flexpay layaway program is an excellent way to retain customers and increase traffic into the stores.
Gituma, FlexPay MD adds, “For the customers, FlexPay plan facilitates locking in today’s purchase price rather than risking inflation, pushing the price higher before you can save up enough money for the purchase.”
The Japanese VC firm that made the investment in Flexpay focuses mainly on fintech startups serving the East and West African markets.
The investment places FlexPay as one of the highest valued startups in sub-Saharan Africa.
