Just months ago, Lipa Later, a Kenyan buy-now-pay-later (BNPL) fintech, was celebrating a significant $10 million debt and equity injection, earmarked for ambitious expansion across Africa. Today, the digital consumer credit provider lies in the hands of an administrator, a stark and rapid reversal of fortune that highlights the volatile landscape of Africa’s nascent tech scene. On March 24, 2025, Joy Vipinchandra Bhatt of Moore JVB Consulting took control of Lipa Later’s business, assets, and management, signaling a formal descent into administration under Kenya’s Insolvency Act of 2015.
Founded in 2018, Lipa Later carved a niche by offering hire purchase services, allowing consumers to acquire goods from retailers and pay in installments, with Lipa Later settling the upfront cost. This model, popular globally, gained traction in Kenya as a means to access essential and aspirational items for a population with varying levels of formal financial inclusion. The company attracted significant investor confidence, securing $12 million in seed funding in early 2022, building on earlier investments from notable startup accelerators.
Yet, the narrative of growth and expansion began to unravel in 2024. While the recent $10 million funding round in late 2024 initially appeared to be a lifeline, it proved insufficient to stem the tide of mounting financial pressures. Reports surfaced of unpaid salaries stretching back months, leaving employees in limbo. Suppliers, too, found themselves chasing outstanding payments, culminating in at least one public legal battle that exposed the company’s precarious financial state.
The case of Africa Foresight Group (AFG), a London-based consultancy, offers a revealing glimpse into Lipa Later’s troubles. Contracted in April 2022 to produce a market report, AFG sued Lipa Later for an unpaid fee of $13,516. Court documents revealed that Lipa Later withheld payment, alleging substandard work. However, in a decisive ruling in December 2024, the Kenyan High Court sided with AFG, noting that Lipa Later had admitted to the debt in internal communications. Justice Mong’are minced no words, stating that Lipa Later was “estopped from claiming” the debt was disputed. This legal defeat not only added to Lipa Later’s financial burden but also painted a picture of a company struggling to manage its obligations.
Adding to the complexity of Lipa Later’s downfall is the shadow of a potentially damaging allegation: the theft of trade secrets. Court documents from a separate case in March 2024, predating the administration, reveal Lipa Later accusing a former Head of Partner Success Manager of breaching their employment contract by joining a competitor, Craft Silicon Kenya, and potentially utilizing Lipa Later’s confidential information. The executive, who resigned in July 2023 and joined Craft Silicon as Head of Product, was alleged to have been involved in the launch of a competing BNPL product shortly after.
Lipa Later sought an injunction to prevent the former employee from working for Craft Silicon and disclosing confidential information. While the court ultimately dismissed the application for a temporary injunction, citing insufficient evidence of direct involvement in product development or actual disclosure of trade secrets, the case highlights the intense competition within the fintech space and the lengths companies will go to protect their intellectual property. Whether actual trade secrets were stolen remains unproven, but the allegations highlight the high stakes and potential pitfalls for startups navigating rapid growth and talent movement.
The acquisition of struggling e-commerce platform Sky.Garden in December 2023 for a reported KES 250 million ($1.9 million) also raised eyebrows and fueled concerns about Lipa Later’s financial prudence. At a time when the company was already facing mounting obligations, the rationale behind absorbing a seemingly distressed entity remains unclear and may have further strained its resources.
The appointment of an administrator marks a critical juncture for Lipa Later. Bhatt’s immediate priority is to engage with stakeholders, including creditors who have been given until April 23, 2025, to submit their claims. The administrator will assess the company’s financial situation, explore potential rescue options, which could include restructuring, finding a buyer for the business, or ultimately, liquidation. The once-promising startup’s directors have now been stripped of their authority over the company’s assets, a clear indication of the severity of the situation.
Lipa Later’s collapse serves as an exemplary tale in the often-exuberant world of African tech startups. While the BNPL model holds significant potential in a market with a large unbanked population, it is not immune to the challenges of economic downturns, funding squeezes, and intense competition. The company’s inability to secure further funding after its 2023 debt raise proved fatal, leaving it unable to meet its financial obligations.
The coming weeks and months will be crucial in determining Lipa Later’s fate. The administrator faces the daunting task of navigating a complex web of debts, legal challenges, and allegations. For the wider Kenyan and African tech ecosystem, Lipa Later’s downfall is a stark reminder that even companies with strong initial backing and promising business models are vulnerable to financial headwinds and the ever-present threat of fierce competition and the need for robust financial management. The story of Lipa Later is not just about a failed startup; it’s a snapshot of the high-stakes, high-reward nature of innovation in emerging markets, where the journey from debt to potential trade secrets theft can culminate in a swift and decisive collapse.