The start-up, Lipa Later, which has been operating in Kenya, Uganda and Rwanda, is expected to set up shop in Tanzania and the West African countries of Ghana and Nigeria.
The company raised the funds in a pre-Series A round backed by investment companies such as Cauris Finance and Lateral Frontiers VC.
Others are GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services.
The company’s founder and CEO, Eric Muli, noted that the funds would help to increase its market-share in the countries they already operate.
“We are excited to be working with our investors as we look to grow and expand to more markets in Africa. In the next 12 months, we are looking to grow and double our presence in the existing markets, even as we open in three to five new markets in Africa,†stated Muli.
In Kenya, the start-up has partnered with big companies such as Carrefour, which then allows customers to purchase products in instalments.
It then charges a monthly interest rate that in most cases hovers around 2.3 per cent.
How it Works
Customers are advised to first sign up with the company and thereafter are allowed to shop for goods from more than 500 retailers that have partnered with the company.
After receiving their goods, the customers are then given a chance to make monthly payments.
“We allow you to own and have unrestricted use of what you want while you pay for it in affordable and flexible monthly instalments.
“We’ve made this experience possible through partnering with your favourite stores in Kenya, Nigeria, Uganda and Rwanda,” reads a statement from Lipa Later’s website.
Source: KENYAGIST.COM
