Engage Capital has submitted a $24.5 million (KES 3.17 billion) bid to acquire Lipa Later, the buy-now-pay-later (BNPL) company that went into administration in March 2025.
The bid, currently under review by administrators Moore JVB Consulting, includes Lipa Later’s technology platform, customer base, intellectual property, and operating licences, but excludes its toxic loan book. If approved, the acquisition could mark one of the few successful resurrections of a tech startup in Kenya’s recent history of insolvency.
A High-Stakes Deal Amidst Collapse
Founded in 2018, Lipa Later offered instalment financing across retail categories including electronics, furniture, and medical services. Despite raising over $25 million in funding by 2024, it collapsed under the weight of unpaid debts and operational missteps, including the high-cost acquisition of Sky.Garden.
Engage Capital’s bid is the largest among three offers, including a KES 2.5 billion (~$18M) offer from a local financial consultancy and a structured financing proposal from UK-based Advance Global Capital.
What’s Included in the Bid
- Assets Acquired: Tech infrastructure, customer accounts, licences, and selected liabilities
- Excluded: Bad loans and certain unresolved debts
- Objective: Relaunch Lipa Later with a cleaner balance sheet and a restructured business model
The offer is currently undergoing due diligence and is subject to court approval under Kenya’s Insolvency Act.
BNPL and Fintech Implications in Africa
If successful, Engage Capital’s acquisition could reestablish Lipa Later as a key player in East Africa’s digital lending space. The BNPL model, while popular among underbanked populations, has faced scrutiny over sustainability, regulation, and risk exposure.
“This acquisition represents a chance to rebuild trust in the BNPL model with better governance, data, and capital discipline,” said a fintech analyst at Nairobi Tech Forum.
What Happens Next?
- Due Diligence Phase: Ongoing under administrator supervision
- Creditors’ Review: Stakeholder feedback to be considered
- Court Sign-Off: Required to finalise asset transfer
- Operational Plan: Yet to be made public by Engage Capital
About Lipa Later
Lipa Later, founded in 2018 by Eric Muli, Michael Maina and Purity Maina in Kenya. It was a buy-now-pay-later (BNPL) fintech company that enabled individuals and businesses to acquire products—particularly electronics, furniture, and appliances—through flexible instalment plans. The platform paid vendors upfront and collected repayments from customers over time.
Administration & Collapse
- On March 24, 2025, Lipa Later was placed under formal administration by Kenya’s Insolvency Act, with Moore JVB Consulting appointed to manage its assets and oversee operations.
- The decision came after several months of financial difficulties, during which Lipa Later was unable to meet its obligations to staff and vendors, despite securing significant funding between 2022 and 2024, including $12 million in 2022, a $10 million round in late 2024, and a $3.4 million debt raise in September 2023.
- Creditors were given until April 23, 2025, to submit their claims for consideration in the administration
