Lipa Later, a leading Kenyan buy-now-pay-later (BNPL) fintech company, has been placed under administration as of March 24, 2025, after facing significant financial struggles and failing to secure additional funding.
Joy Vipinchandra Bhatt from Moore JVB Consulting LLP has been appointed as the administrator, according to official announcements.
The company’s financial troubles have been building for months, with reports saying that employees hadn’t been paid for nearly a year, highlighting the seriousness of Lipa Later’s cash flow problems.
In addition to this, the company is dealing with unpaid debts, including a legal issue with Africa Foresight Group (AFG) over $13,000 in consultancy fees.
The move to enter administration marks a turning point for Lipa Later. Control of the company has shifted from its directors to the appointed administrator, who will now oversee its operations and assets.
Creditors have been informed and must submit their claims by April 23, 2025.
Bhatt shared that the priority is to work closely with all involved parties to find the best possible solution for the company. This may include reviewing Lipa Later’s finances and exploring options for restructuring or even a potential sale.
Lipa Later’s situation sheds light on the broader challenges faced by the BNPL sector in Kenya, particularly with the tightening of funding in the market. What was once a high-flying startup that attracted substantial seed funding is now facing difficult times, and it’s a story that mirrors the struggles of other Kenyan startups, like Sendy, Copia, and iProcure, which have also faced financial difficulties after failing to secure further investment.
The company’s future now rests in the hands of the administrator, who will need to navigate these tough circumstances and decide the best way forward.