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Lipa Later

Africa's Fastest growing SME bank for retailers.

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Security Type
Crowd SAFE
Financial Services
Min Investment
Offering Date
August 29, 2023
Expected Close Date
October 28, 2023
Target Raise
No. Investors
Security Price
Number of Employees
Short Term Debt
Cost of Goods
Long Term Debt
Net Income

Company Description

Lipa Later Group Inc. is a financial technology company that offers a buy now, pay later service in Africa.

Lipa Later is a buy now, pay later platform that allows consumers to purchase goods and services and pay in affordable installments without needing a credit card. There is a $500B Financial Inclusion Opportunity in Urban Africa. Incorporated in November 2017, the business has built its loan book to slightly over $8M, with a vast merchant network and low customer acquisition cost. The company is a market leader in the BNPL credit segment, a mission-driven credit-only and technology-enabled firm that is building Africa’s largest credit, payments, and shopping platform. The Company has a highly diverse and engaged customer base, representing a wide range of individuals and businesses seeking innovative financial solutions. With a focus on cutting-edge technology and user-centric design, it has successfully attracted customers from various demographics and industries. The company has an exclusive partnership with Mastercard for POS financing.

The company generates revenue from -
Commissions and Fees: enables merchants to sell online (through our leading e-commerce platform Sky Garden) and offline through our robust POS system. The fees generated for this range between 5% - 15% per transaction carried out on these platforms.
Interest - It is a credit partner to merchants and consumers; its merchants and consumers access credit through Lipa Later (based on existing transactional data). The customers pay in the range of 4%-10% based on their respective risk profiles.

The company has 350k consumers, 35k merchants,, and a CAC of $4. The company had loans receivable worth $6.3M in 2022 compared to $1.74M in 2021. Interest receivable amounted to $2.19M in 2022 against $715k in 2021. The net revenue stood at $3.5M in 2022 and $988k in 2021, a 558% YoY growth. The company aims to bank 100,000 SMEs in Africa and earn $20M in revenue by 2024. It is listed by the Financial Times as one of the fastest-growing companies in Africa.

Key Deal Facts

Listed by Financial Times as one of the fastest growing companies in Africa Huge Market: A $500B Financial Inclusion Opportunity in Urban Africa Traction: 350K Consumers, 35K Merchants & a CAC of $4 Profitable: 558% YoY growth Market Leader: Exclusive partnership with Mastercard for POS financing Funded: Raised $25M from top USA VC's and Commercial Banks Team: Diverse team from Africa, China & USA recognized by Forbes & LSE

Use of Proceeds

The company plans to use the proceeds for On-lending and platform fees.

Management Team / Advisory Board Bios

The management team is very strong.

Eric Muli, Founder
An entrepreneur and a community builder. He attended Babson College and Stanford Seed School of Business in 2019. He works full-time with Lipa Later.

Michael Maina, Co-Founder & C.O.O
Mr. Maina has varying expertise in the business and legal fields. As the youngest lead consultant for Africa Business Partners a consultancy focused on Japanese firms entering the African market, he offered organizational and analytical skills that helped in the setting up of several Japanese institutions in the region. Mr. Maina is the COO at Odyssey Capital. His role at the company involves providing strategic management of credit operations to meet the Company’s goals. He is a dual degree holder from the Strathmore School of Management and Commerce (Finance major) as well as the University of Nairobi Law School.

The company has a very impressive board of advisors including Steven Grin, Olugbenga GB Agboola, Karim Sharim, Tommy Mermelshtayn, and Marc Schneider.

Valuation Notes

It has raised $25M from top US VCs and Commercial Banks. The company has valued itself at $30M post-money. The valuation looks justified.
Amount Raised : $70,702
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Security Description

An equity crowdfunding specific version of a SAFE used by crowdfunding portal Republic. Upon conversion (if and when that happens), investors may receive special shares with limited rights that do not show up on a company’s cap table. The issuer may roll over and not convert shares at the next financing round causing investors to lose out on some upside.

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