Kenya’s pay-as-you-go startup, Lipa Later, has raised $12 million in its pre-series A round of funding. The new funding adds to an undisclosed investment in 2020 by Tokyo-headquartered Uncovered Fund.
Investors who took part in the part in the round of funding include Cauris Finance, Lateral Frontiers Ventures, GreenHouse Capital, SOSV IV LLC, Sayani Investments, and Axian Financial Services.
The company says it will use the funding, a mix of equity and debt, to expand within its current markets Kenya, Uganda and Rwanda and enter new markets such as Nigeria, Ghana and Tanzania.
The Lipa Later option integrates into e-commerce platforms enabling merchants to sell products directly to consumers and pay for them in affordable monthly instalments.
The company’s credit scoring and machine learning system enables the consumer to sign up and get a credit limit in seconds without the need for bulky documentation and a long lengthy credit approval process.
LipaLater boasts a wide array of exclusive merchants and world renowned brands such as Carrefour, Apple, Tecno and Samsung.