Lipa Later, a Kenyan buy-now-pay-later (BNPL) fintech, has been placed under administration effective March 24, 2025, after months of financial struggles and failed fundraising efforts. According to a gazette notice seen by TechCabal, Joy Vipinchandra Bhatt from Moore JVB Consulting LLP has been appointed administrator. This development marks a turbulent year for Lipa Later, which has struggled to secure fresh funding since its last capital injection – a $3.4 million debt raise in September 2023 – leaving it unable to pay employees and suppliers.

Entering into administration means the company's directors have lost control of its assets and operations, with decision-making authority shifting to the appointed administrator. Creditors have until April 23 to submit claims as the company's future hangs in the balance. In a statement, Bhatt said, "We are currently engaging all key stakeholders of the company to elicit their cooperation in order to achieve the best possible outcome for the company."

At least five employees told TechCabal they had not received salaries for several months as of December 2024. Lipa Later also owed several suppliers, including London-based consultancy Africa Foresight Group (AFG), which sued the company in 2024 over an unpaid $13,516 consultancy fee, according to court documents seen by TechCabal. The dispute with AFG, which was contracted in April 2022 to prepare a market report, escalated after Lipa Later withheld payment, claiming the work was substandard.

In a December 2024 ruling, Kenya's High Court dismissed Lipa Later's defense, stating the company had admitted to the debt in internal correspondence. The court also ruled that Lipa Later failed to meet the legal threshold of showing a genuine and substantial dispute over the debt. Justice Mong'are said in the ruling, "It is therefore clear to me that the amount demanded in the statutory demand is, in fact, not disputed, and the debtor (Lipa Later) is estopped from claiming so having admitted to the debt."

Lipa Later had previously strong investor backing, raising $12 million in seed funding in January 2022 from Cauris, Lateral Frontiers, and others, alongside undisclosed debt from the same investors. Earlier rounds saw seed investments from Orbit Startups in 2021 and Founders Factory Africa in 2019. Despite early investor confidence, the company failed to raise more funding in 2024. One top executive, who wished not to be named for discussing confidential information, claimed the company was close to securing a deal in Q4 2024, but it never materialized.

The company's financial position came under scrutiny in December 2023 when it acquired struggling e-commerce platform Sky.Garden for KES 250 million ($1.9 million). The deal raised concerns about Lipa Later's financial health, as it was already grappling with mounting obligations at the time. Lipa Later's fate now rests on whether its administrator can restructure its operations or find a buyer willing to take a chance on its BNPL model.

The administration of Lipa Later serves as a cautionary tale for fintech startups in Africa, highlighting the importance of sustainable business models and responsible financial management. As the BNPL space continues to evolve, the fate of Lipa Later will be closely watched, with implications for the broader fintech ecosystem.