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March 27.2025

2 Minutes Read

Lipa Later Enters Administration: A fintech's Troubling Journey

Cheerful young professionals in a modern office showcasing buy-now-pay-later fintech solutions.

The Downfall of Lipa Later: A Cautionary Tale for Fintech

Lipa Later's recent entry into administration marks a significant downturn for the Kenyan buy-now-pay-later (BNPL) fintech, effectively diagnosed with financial struggles following prolonged unsuccessful fundraising efforts. As of March 24, 2025, Joy Vipinchandra Bhatt from Moore JVB Consulting LLP has been appointed as the administrator, stepping in at a time when Lipa Later's operations remain in limbo. This shift signals a loss of control for the company's directors, creating uncertainty around the future of its operations and financial obligations.

A Troubled Path: From Funding to Financial Crisis

Once regarded as a star within the fintech landscape after a robust $12 million seed funding in 2022, Lipa Later's position has deteriorated sharply. Its last fundraising attempt—a $3.4 million debt raise in September 2023—illustrates the challenges it faced while attempting to sustain its growth and expansion. Despite strong initial backing, reports indicate that creditors have initiated claims against the company, with the deadline set for April 23, emphasizing the precarious situation it currently faces.

Legal Battles and Unpaid Debts: The Strain of Business Operations

Legal disputes further complicate Lipa Later's struggle for survival. A notable case involved the Africa Foresight Group (AFG), which pursued legal action due to a $13,516 unpaid consultancy bill. The High Court's dismissal of Lipa Later's defense highlighted the company's difficulty in negotiating its financial commitments. The ruling noted that Lipa Later had acknowledged its debts internally, ultimately failing to substantiate any significant objections towards payment.

A Flip of Fortune: What’s Next for Lipa Later?

As administrators work to restructure or salvage what remains, key stakeholders await the outcome of these proceedings. The fate of Lipa Later hinges on whether it can emerge from this crisis through strategic restructuring or attract a new buyer who sees potential in its BNPL offering. This tumultuous journey serves as a stark reminder of the volatility within the financial technology sector, where impressive beginnings can swiftly lead to disarray.

As we observe Lipa Later's uncertain future, the broader fintech community must reflect on the precarious nature of startup financing and the critical importance of sustainable growth over ambitious expansion plans. Will Lipa Later manage to rebound from its current challenges, or does this mark the end of its journey? The next few weeks will be crucial in determining its resolution.

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Lipa Later Enters Administration: A fintech's Troubling Journey

The Downfall of Lipa Later: A Cautionary Tale for Fintech

A Troubled Path: From Funding to Financial Crisis

Legal Battles and Unpaid Debts: The Strain of Business Operations

A Flip of Fortune: What’s Next for Lipa Later?

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