Work together Capital, a Kenyan-focused enterprise capital company, has made a $24.5 million present to build up Lipa Later, a Kenyan buy-now-pay-later startup that went into administration in March 2025 after failing to spice up new capital, in step with three people conversant within the matter.
Work together Capital despatched a letter of intent (LOI) to LipaLater in mid-Would possibly, proposing to build up LipaLater’s experience platform, purchaser base, psychological property, and dealing licences. The deal, nonetheless subject to due diligence, would moreover see the company pay just a few of Lipa Later’s liabilities, excluding harmful loans.
“Full Consideration: $24,500,000. Proposed Development: Acquisition of Objective’s fintech platform, purchaser base, psychological property, license acquisition, clearance of agency liabilities, mortgage information and associated operations,” Work together Capital LOI seen by TechCabal be taught.
If the deal goes by, it’d mark a unusual turnaround for a Kenyan startup under administration. A worthwhile sale would possibly break that pattern in a market the place insolvency sometimes spells the tip, dragged by licensed battles, mounting cash owed, and administrators’ lack of urgency.
Primarily based in 2018 by Eric Muli and Michael Maina, Lipa Later had sturdy investor backing, elevating $16.6 million all through 10 rounds, along with $12 million in seed funding in January 2022 from Cauris and Lateral Frontiers. Earlier rounds seen pre-seed investments from Orbit Startups in 2021 and Founders Manufacturing facility Africa in 2019.
No matter early investor confidence, the company’s enterprise model faltered. It failed to spice up new funding in 2024, leaving it unable to meet payroll or settle mounting supplier cash owed.
A former authorities conversant within the technique instructed TechCabal that takeover talks began sooner than Lipa Later was positioned under administration in March 2025. Since then, the court-appointed administrator, Moore JVB Consulting, has moreover actively engaged potential patrons.
Lipa Later co-founder Eric Muli confirmed to TechCabal that acquisition talks are ongoing, nevertheless declined to produce extra particulars, citing the pending courtroom course of.
A deal with Work together Capital, if concluded, would possibly salvage what stays of Lipa Later’s once-hyped model, which allowed clients to buy electronics and totally different gadgets on instalment whereas the startup paid retailers upfront. At its peak, Lipa Later operated in Kenya, Uganda, and Rwanda, and had plans to extend into Nigeria and Ghana.
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