Lateral Investment Partners is a mission-driven venture capital fund managed by Lateral Capital, has completed another investment in Lipa Later, the leading fintech in consumer credit (Buy Now, Pay Later) in East Africa.
Lipa Later provides a risk-free, point-of-sale credit option that allows retailers to sell goods and services in affordable monthly installments. On the consumer-facing side, they allow consumers to pay for items in monthly installments, providing financial inclusion, and significantly increasing the purchasing power of consumers. Lipa Later has partnered with over 500 retail partners across East Africa and has reached over 100,000 customers. Following continued exponential growth, Lipa Later expanded across other African markets, specifically Rwanda in Q4 2020, and is positioned to expand into Nigeria and Uganda in 2021.
Lateral Capital is a venture fund that invests in early and growth-stage technology-enabled businesses in Africa across essential industries such as financial services, energy, healthcare, and education. This investment follows on from their initial investment in Q4 2019.
Other venture funds that participated in the investment round were Uncovered Fund and Musha Ventures.
On the recent follow- on investments, Lipa Later Group CEO and Co-Founder, Eric Muli said, “We are very enthusiastic about the backing received thus far and we are extremely humbled by the belief that our stakeholders have had in us. This follow-on investment will support our planned expansion across the continent. We see a future where every African can access affordable financing.”
Deal Lead and Partner at Lateral Capital, Samakab Hashi stated “Having seen Management successfully navigate a tremulous 2020, we are confident that Lipa Later are ideally placed to continue to grow, and we are excited to support the business in its continued mission to scale across the continent.”
As part of the transaction, Steven Grin, Managing Partner, Lateral Capital will join the Lipa Later board. Mr. Grin is a seasoned entrepreneur and investment professional with nearly two decades of experience investing as a principal and fund manager in developed and emerging markets. He has extensive experience in finance, real estate, energy, and project finance.
Mr. Grin joins the company’s board that includes Dr. Akintoye Akindele, Chairman, Platform Capital who is also the appointed Chairman of the Board. Dr. Akindele brings a wealth of experience to the board as both an investor, an entrepreneur, and a strategic partner.
Steven Grin similarly affirmed that “Investing in visionary technological companies trying to solve pain points across Africa like Lipa Later is a key focus for me, looking forward to taking on the role.”
Dr. Akindele, Chairman, Platform Capital also commented, “This is one step closer to unlocking our continent’s potential and I’m delighted to work with the innovative and entrepreneurial-minded team at Lipa Later.”
About Lipa Later
Lipa Later is a consumer financing platform that allows consumers to purchase items in easy, flexible, and affordable monthly installments.
About Lateral Capital
Lateral Capital represents an alternative approach for investing in growth markets. They invest in early and growth-stage technology-enabled businesses in Africa that solve significant pain points across essential industries.