Interact Capital, a Kenyan-focused enterprise capital agency, has made a $24.5 million provide to accumulate Lipa Later, a Kenyan buy-now-pay-later startup that went into administration in March 2025 after failing to boost new capital, in keeping with three individuals conversant in the matter.
Interact Capital despatched a letter of intent (LOI) to LipaLater in mid-Might, proposing to accumulate LipaLater’s expertise platform, buyer base, mental property, and working licences. The deal, nonetheless topic to due diligence, would additionally see the agency pay a few of Lipa Later’s liabilities, excluding dangerous loans.
“Complete Consideration: $24,500,000. Proposed Construction: Acquisition of Goal’s fintech platform, buyer base, mental property, license acquisition, clearance of firm liabilities, mortgage guide and related operations,” Interact Capital LOI seen by TechCabal learn.
If the deal goes by, it might mark a uncommon turnaround for a Kenyan startup below administration. A profitable sale might break that sample in a market the place insolvency typically spells the tip, dragged by authorized battles, mounting money owed, and directors’ lack of urgency.
Based in 2018 by Eric Muli and Michael Maina, Lipa Later had sturdy investor backing, elevating $16.6 million throughout 10 rounds, together with $12 million in seed funding in January 2022 from Cauris and Lateral Frontiers. Earlier rounds noticed pre-seed investments from Orbit Startups in 2021 and Founders Manufacturing facility Africa in 2019.
Regardless of early investor confidence, the corporate’s enterprise mannequin faltered. It failed to boost new funding in 2024, leaving it unable to fulfill payroll or settle mounting provider money owed.
A former government conversant in the method instructed TechCabal that takeover talks started earlier than Lipa Later was positioned below administration in March 2025. Since then, the court-appointed administrator, Moore JVB Consulting, has additionally actively engaged potential buyers.
Lipa Later co-founder Eric Muli confirmed to TechCabal that acquisition talks are ongoing, however declined to supply additional particulars, citing the pending courtroom course of.
A take care of Interact Capital, if concluded, might salvage what stays of Lipa Later’s once-hyped mannequin, which allowed customers to purchase electronics and different items on instalment whereas the startup paid retailers upfront. At its peak, Lipa Later operated in Kenya, Uganda, and Rwanda, and had plans to increase into Nigeria and Ghana.
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