Lipa Later Enters Administration After Failed Funding, Mounting Debt

STARTUP VENTURE CAPITALMarch 28, 2025 at 11:17 AM UTC

TLDR

Kenyan buy-now-pay-later (BNPL) fintech Lipa Later has been placed under administration as of March 24, 2025
The move removes the company’s directors from control of operations and hands decision-making authority to the administrator
Lipa Later had raised $12 million in equity in 2022 and secured $3.4 million in debt in September 2023

Kenyan buy-now-pay-later (BNPL) fintech Lipa Later has been placed under administration as of March 24, 2025, following months of financial strain. Joy Vipinchandra Bhatt of Moore JVB Consulting LLP has been appointed administrator, according to a gazette notice. The move removes the company’s directors from control of operations and hands decision-making authority to the administrator.

Creditors have until April 23 to submit claims. Employees and suppliers have reported non-payment since late 2024. In one case, London-based Africa Foresight Group sued Lipa Later over a $13,516 unpaid consultancy fee. Kenya’s High Court ruled against Lipa Later in December 2024, citing internal emails admitting the debt.

Lipa Later had raised $12 million in equity in 2022 and secured $3.4 million in debt in September 2023. However, it failed to raise additional capital in 2024. Its acquisition of the e-commerce platform Sky.Garden for KES 250 million ($1.9 million) in December 2023 raised questions about its financial stability.

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Key Takeaways

Lipa Later’s downfall marks a cautionary chapter in Africa’s fintech boom. Once seen as a rising BNPL innovator, the company’s collapse reflects the mounting pressure on startups relying heavily on external capital. Despite raising over $15 million since 2019, Lipa Later failed to secure funding in 2024 amid tighter investor sentiment. The acquisition of Sky.Garden, itself under distress, may have worsened Lipa Later’s liquidity challenges. Meanwhile, employee salary delays and supplier debts eroded stakeholder trust. The appointment of an administrator signals a last effort to salvage value—either through restructuring or sale. Lipa Later's model of consumer lending with delayed repayments required sustained cash flow and continuous funding. Without it, liabilities mounted. Its fate may now rest on whether a buyer sees potential in its infrastructure or customer base. The case highlights the growing scrutiny of fintech sustainability across Africa, as rising interest rates, inflation, and risk aversion weigh on the funding environment for startups.

Startups

Lipa Later

Kenya

Bankruptcy

Adminstration

BNPL