Engage Capital Leads Three Bids for Struggling Fintech Lipa Later

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Race for Lipa Later: Engage Capital Leads Three Bids for Struggling Fintech

Venture capital firm Engage Capital has submitted a USD 24.5 million bid to purchase ‘buy-now-pay-later’ firm Lipa Later. The VC is one of three investment firms to offer the financially troubled hire-purchase firm, which went into administration in March 2025, money to either acquire or finance it.

Lipa Later, which purchased the similarly cash-strapped e-commerce firm Sky.Garden in late 2022, was launched in 2018, and immediately raised USD 12 million in seed funding. In total, the firm raised USD 16.6 million over 10 rounds, and went on to expand into Uganda and Rwanda. However, it ran into headwinds in 2024, failing to raise additional money to meet payroll obligations.

The company then went into administration under Joy Vipinchandra Bhatt of JVB Consulting. Mr Bhatt now has the responsibility of deciding which of the three investors to choose from.

The other two firms to bid for the business are an as-yet unnamed Nairobi-based consultancy firm, which has offered USD 19 million, and Advance Global Capital (AGC), coming in with USD 5 million.

Engage Capital’s letter of intent indicates they would like to acquire the entire business excluding its non-performing loans, but including its intellectual property, performing loan book and customer base.

On the other hand, AGC has offered the business a 36-month loan facility tied to Lipa Later’s receivables, rather than a full purchase of the business. The money is intended to grow the BNPL’s regionally.

The details on the offer by the Nairobi-based firm are scant, but they have offered to purchase the entire business.

While it is unclear what the exact reasons are for the BNPL’s financial woes, Kenya’s annual changes to its taxation and importation mandates, as well as a weakening shilling and a difficult economy, may form part of the reason.