Engage Capital has made a Ksh. 3.1 Billion offer to acquire Lipa Later which went into administration in March 2025. This is after they failed to raise new capital from investors.
Engage Capital a Kenyan-focused venture capital firm, sent a letter of intent (LOI) to LipaLater a Kenyan buy-now-pay-later startup in mid-May. In the letter, they proposed to acquire LipaLater’s technology platform, customer base, intellectual property, and operating licences. The deal, still subject to due diligence, would also see the firm pay some of Lipa Later’s liabilities, excluding bad loans.
“Total Consideration: $24,500,000. Proposed Structure: Acquisition of Target’s fintech platform, customer base, intellectual property, license acquisition, clearance of company liabilities, loan book and associated operations,” Engage Capital LOI.
Founded in 2018 by Eric Muli and Michael Maina, Lipa Later had strong investor backing, raising $16.6 million across 10 rounds, including $12 million in seed funding in January 2022 from Cauris and Lateral Frontiers. Earlier rounds saw pre-seed investments from Orbit Startups in 2021 and Founders Factory Africa in 2019.
Despite early investor confidence, the company’s business model faltered. It failed to raise new funding in 2024, leaving it unable to meet payroll or settle mounting supplier debts.
According to reports, takeover talks began before Lipa Later was placed under administration in March 2025. Since then, the court-appointed administrator, Moore JVB Consulting, has also actively engaged potential investors.
At its peak, Lipa Later operated in Kenya, Uganda, and Rwanda, and had plans to expand into Nigeria and Ghana.