Lipa Later, a technology-driven, consumer credit platform based in Kenya has secured investment from Platform Capital. Lipa Later is revolutionising how consumers in Africa shop and access credit by providing a risk-free, point-of-sale credit option that allows retailers to sell goods and services in affordable monthly instalments.
This innovative solution enables consumers to access credit, increase their purchasing power, and cushion their cost of living. This solution is powered by the company’s vast retail network, and proprietary technology utilising data, analytics and machine learning to determine credit worthiness of consumers.
The company currently operates in Kenya and Rwanda and has experienced strong growth of 166% CAGR from inception in 2016 to 2019 initially providing financing for electronic and furniture products to over 160,000 customers.
Lipa Later’s goal is to enable payment plans for everything from a phone to home through its partnerships with over 500 local & global brands such as Samsung, Tecno (Transsion Holdings), Sony, Huawei and Apple.
With over 800 million individuals across Africa with little or no access to affordable financial solutions due to a weak credit infrastructure, Lipa Later is positioned to scale its operations into Uganda and Tanzania in 2020, then into Nigeria, Ghana and across sub-Saharan Africa over the next 18 months. Lipa Later will also expand into new verticals by leveraging its scalable technology & strong partnerships.
The company is backed by other investors including Musha Ventures, Majilis Investment, Lateral Capital, and Mastercard (through the Startpath program) and are in advanced discussions with other strategic North American investors to accelerate its expansion. As part of Platform’s investment, Dr. Akintoye Akindele, Chairman of Platform Capital will join the board of Lipa Later.
Eric Muli, CEO and Co-founder at Lipa Later said, “We are super excited about the future and working with Platform Capital in the next phase of our journey. As we work towards making living more affordable across the continent, Platform Capital will provide us with the much-needed strategic support to explore new markets and opportunities. Nigeria is our next frontier and our partnership with Platform is timely.”
Yomi Akapo, Africa CEO at Platform Capital said, “Young, educated, and upwardly mobile African consumers want access to the same goods and services as their global peers, but are hindered by the lack of financial solutions such as credit cards, layaway schemes, etc. that make goods and services affordable. We believe that Lipa Later’s technology is part of the financial infrastructure of the future and provides a robust and tested solution for consumers to increase their purchasing power and retailers to generate increased sales. We look forward to working closely with the team to expand the business across Africa and transform access to consumer credit.”