Kenyan tech credit platform Lipa Later has announced the closure of a Ksh.500 million debt issue.

Founded in 2018 by Eric Muli and Michael Maina, the lending marketplace provides post-paid payments at e-commerce stores. The Buy Now Pay Later (BNPL) service partners with retailers to allow shoppers to pay in instalments and operates in Kenya, Uganda, and Rwanda.

Lipa Later Group CEO Eric Muli told Citizen Digital that the raise will enable the start-up to expand its local customer and business base and improve its service. It was supported by Rubicon Landing as the transaction advisor and KN Law as the legal advisor.

“We are excited about the opportunities this funding has unlocked for merchants and consumers. We would like to extend our heartfelt gratitude to the investors and supporters for their unwavering trust in our vision. These funds have enabled us to further invest in technology and infrastructure to make our financing solutions even more accessible and convenient for our customers,” Muli said.

Last week, the start-up announced it had secured approval to raise funds from the general public in the United States, becoming one of the first African companies to secure the green light from the U.S. Securities and Exchange Commission (SEC).

This gave investors worldwide a chance to invest in LipaLater through Republic, a global financial technology company that allows anyone to invest in anything, anywhere.

By leveraging Republic’s platform, the approval also gave LipaLater access to a worldwide network of backers seeking to support potential ventures.

Lipa Later currently boasts 350,000 consumers and over 35,000 merchants.

At the close of last year, the start-up acquired the e-commerce venture Sky Garden, which was on the brink of closure following insolvency, for an undisclosed amount.

The move, Lipa Later said, would help it re-energise its commitment to bridging the gap between the merchant and a customer with more empowerment between both parties.