Kenyan Buy-Now-Pay-Later Pioneer Lipa Later Faces Insolvency
Kenyan buy-now-pay-later startup, Dua Lipa Later, has faced financial difficulties and was placed under administration in March 2025. The company, founded in 2018, aimed to empower African businesses through e-commerce and financial inclusion solutions.
Lipa Later's struggles reflect broader challenges in Kenya's startup ecosystem. Several prominent ventures, including SkyGarden, Sendy, and WeFarm, have closed operations due to market conditions and funding issues. Lipa Later attempted to raise additional funds but was unable to secure further investment due to a global capital shortage. Despite strong investor backing, the company struggled with financial sustainability.
In September 2023, Lipa Later raised $3.4 million in privately placed debt issuance following the acquisition of Sky.Garden for KES 250 million ($1.6 million). However, these funds were insufficient to sustain the company's operations. Creditors have until April 2025 to submit their claims.
Lipa Later's administration comes amidst a wave of startup closures in Kenya. The company's predicament highlights the need for sustainable funding models and market conditions that support the growth of African startups. As of 2026, there is no available information on Lipa Later's status following the administration insolvency.
