Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million – TechCrunch

Later LipaKenya’s technology-driven shopper credit score platform plans to broaden into new markets in Africa after raising $ 12 million in pre-Collection A funding.

The Fairness and Debt Finance Rounds had been attended by Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Monetary Companies.

Based in 2018, the startup is a postpaid (BNPL) firm that’s presently planning to enter Tanzania, Ghana and Nigeria and broaden into present markets comparable to Kenya, Uganda and Rwanda.

“We’re excited to work with buyers to develop and broaden into more markets in Africa. Within the subsequent 12 months, we’ll open up 3-5 new markets in Africa. Regardless of this, we intention to extend and double our presence within the present market, “stated Lipa Later co-founder and CEO. Eric Muri..

Lipa Later has unique partnerships with retailers throughout these markets, permitting consumers to pay for his or her merchandise in installments. For instance, a partnership between Lipa Later and French retailer Carrefour, which has a regional presence, permits prospects to pay for objects, together with furnishings, electronics and even recent meals, in month-to-month installments.

The client pays a month-to-month curiosity (about 2.3% for Carrefour) on the credit score offered. Startups plan to cowl more nations throughout Africa and construct more partnerships with retailers.

(Proper to Left) Frank Morrow Nation Supervisor – Carrefour East Africa and Eric Muri CEO Reparter marks the rollout of Lipa Vismart merchandise with Repalterer.MeMage credit score: After the lipa.

“LipaLater not solely modifications the buyer credit score scenario throughout Africa, which was beforehand inaccessible to most individuals, however can also be driving the way forward for procuring, e-commerce and funds. They really make this a product and buyer. It has confirmed to be extremely scalable throughout a number of markets, taking the lead, benefiting each retailers and shoppers, “stated Ruby Nimkar, a companion at GreenHouse Capital.

Lipa Later’s distinctive credit score scoring and machine studying system permits shoppers to enroll and get credit score limits virtually immediately. Startups have additionally constructed a BNPL API that integrates into their e-commerce platform. This enables retailers to promote their merchandise on to shoppers, who can remit month-to-month installments of bought objects.

The brand new funding shall be added to a personal 2020 funding by the Tokyo-based Uncovered Fund. The fund invests in early and seed stage startups in Africa. Lipa Later was considered one of 5 funded startups.

Lipa Later is considered one of Kenya’s main gamers within the BNPL market, competing with Aspira, Miti, Flexpay Applied sciences and Julla. In keeping with this 2021 research on Kenya, Kenya’s BNPL cost business is rising strongly as a result of speedy penetration of e-commerce and the consequences of the financial slowdown attributable to the COVID-19 pandemic. Kenya’s BNPL business is predicted to report a CAGR of 30.8% between 2021 and 2028. The whole industrial worth of BNPL is predicted to rise from $ 51.6 million in 2020 to $ 589.5 million in 2028.

Lipa Later competes with South Africa’s Payflex (not too long ago acquired by Australia’s BNPL Zip) and PayJustNow, and Nigeria’s PayQart and Carbon to cross Africa, the place alternatives are plentiful as e-commerce and various credit score sources develop. I’ve to confront. zero.

Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million – TechCrunch Source link Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million – TechCrunch

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