Kenyan venture capital firm Engage Capital has submitted a $24.5 million bid to acquire Lipa Later, a local buy-now-pay-later startup that entered administration in March 2025 after unsuccessful efforts to secure additional funding, according to three sources with knowledge of the situation.

In mid-May, Engage Capital submitted a letter of intent (LOI) to Lipa Later, outlining plans to acquire the company’s technology infrastructure, customer network, intellectual property, and regulatory licences. The proposed deal pending due diligence also includes partial assumption of Lipa Later’s liabilities, excluding non-performing loans.

“Total Consideration: $24,500,000. Proposed Structure: Purchase of the Target’s fintech platform, user base, proprietary assets, operational licenses, settlement of company liabilities, loan portfolio, and related business functions,” reads the Engage Capital LOI reviewed by TechCabal.

If finalized, the deal could represent an uncommon recovery for a Kenyan startup in administration. A successful acquisition would challenge the norm in a market where insolvency typically leads to collapse hampered by legal disputes, rising debt, and slow-moving administrators.

Launched in 2018 by Eric Muli and Michael Maina, Lipa Later secured substantial investor support, raising $16.6 million over 10 funding rounds. This included a $12 million seed round in January 2022 led by Cauris and Lateral Frontiers, following earlier pre-seed investments from Orbit Startups in 2021 and Founders Factory Africa in 2019.

Although it initially gained strong investor backing, Lipa Later’s business model ultimately stumbled. The company was unable to secure fresh funding in 2024, leading to missed payroll obligations and growing unpaid debts to suppliers.

A former executive involved in the process revealed to TechCabal that acquisition discussions had already started prior to Lipa Later’s entry into administration in March 2025. Since then, the court-appointed administrator, Moore JVB Consulting, has continued outreach to potential investors.

Lipa Later co-founder Eric Muli acknowledged to TechCabal that acquisition discussions are underway but withheld additional information, citing the ongoing court proceedings.

Should the deal with Engage Capital go through, it could rescue the remnants of Lipa Later’s previously celebrated model, which enabled customers to purchase electronics and other items in instalments while the startup paid vendors in advance. At its height, Lipa Later was active in Kenya, Uganda, and Rwanda, with expansion plans targeting Nigeria and Ghana.

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