Kenyan device financing firm, Lipa Later, seems to have the promise of revival as three firms have reportedly entered a race to acquire it. This comes a few months after the financially troubled company officially went under administration.
Among the interested firms are Canadian firm Engage Capital, which has submitted a KES 3.17 billion offer to fully acquire Lipa Later, its tech platform, IP, licenses and full customer base. The financial service provider has also pledged to absorb and clear all Lipa Later’s debts.
The other bidder is a Kenyan financial consultancy firm whose name remains confidential, which came in with a KES 2.5 billion offer to acquire the startup.
According to Business Daily, talks with the Kenyan firm were confirmed by Lipa Later founder Eric Muli to have started, although details about the proposal have been kept under wraps.
The third potential investor is London-based financial institution Advance Global Capital (AGC), which has proposed a KES 646 million loan to Lipa Later. The proposed deal consists of an immediate $3 million fund with a $2 million addition after a year.
This deal is very different from the first two as it will also be tied to Lipa Later’s receivables, but excluded from its consumer lending operations. The disbursement is meant to help Lipa Later with its operations and plans to expand to Uganda and Rwanda.
Despite these three major bids, it is reported that other offers have been submitted. The startup’s administrator, Joy Vipinchandra Bhatt of Moore JVB Consulting, has declined to make a comment at this time.
From the race, it is clear that several investors are interested in acquiring a fintech that once had a lot of promise in Kenya’s ‘Buy Now Pay Later’ landscape. However, even after a successful acquisition, the company faces a long road to rebuilding the trust of Kenyan consumers.
