Bid by Engage Capital Tables for $24.5 Million Seeks to Resuscitate Lipa Later from Administration
In a significant development, Kenyan venture capital firm Engage Capital has submitted a bid of $24.5 million (approximately Sh3.17 billion) to acquire the troubled fintech startup Lipa Later, which entered administration in March 2025.
The proposed deal, if successful, aims to acquire Lipa Later’s technology platform, customer base, intellectual property, licenses, and performing loan book, while excluding non-performing loans. The acquisition is subject to due diligence, regulatory approvals, and confirmation of funding.
Details of the Proposed Deal
- Offer amount: $24.5 million (Sh3.17 billion)
- Acquisition scope: Entire fintech platform, customer base, proprietary assets, operational licenses, and existing performing loans.
- Liabilities: Clearance of company liabilities is included, but non-performing loans are excluded.
The letter of intent was submitted in mid-May 2025.
Potential Impact
If successful, Engage Capital’s acquisition could represent an uncommon successful recovery of a Kenyan startup in administration, which typically face collapse and lengthy legal disputes.
The deal would preserve and grow Lipa Later’s fintech operations, possibly stabilizing and expanding its regional footprint (Uganda and Rwanda) from its prior expansions. This acquisition could help clear debts and revive confidence in Kenya’s BNPL (buy-now-pay-later) market, which has faced challenges from changing tax laws, a weakening shilling, and economic difficulties.
Previous Investors and Funding History
Lipa Later was launched in 2018 by Eric Muli and Michael Maina. It raised a total of $16.6 million over 10 funding rounds. Notable investors include Cauris Capital and Lateral Frontiers, who led a $12 million seed round in January 2022, Orbit Startups (2021), and Founders Factory Africa (2019).
Other Bidders and Offers
Two other firms are competing for Lipa Later. A Nairobi-based financial consultancy firm has offered $19 million to purchase the entire business, while London-based Advance Global Capital (AGC) has offered a $5 million loan facility (invoice factoring) aimed at supporting invoice financing and regional growth.
This bid by Engage Capital is the highest and most comprehensive offer, targeting full acquisition and operational control excluding non-performing loans, positioning it as the lead contender to revive Lipa Later.
The venture capital firm, Engage Capital, has proposed to acquire Lipa Later's business, finance, technology, and intellectual property for $24.5 million, targeting growth and revival in the Kenyan buy-now-pay-later (BNPL) market. The deal, subject to due diligence, regulatory approvals, and confirmation of funding, could potentially exclude non-performing loans, positioning Engage Capital as a lead contender among the competing bidders.
