Kenyan fintech Lipa Later has secured $5 million in private debt issuance, but the company still wants to raise $20 million for expansion plans.

Kenyan fintech firm Lipa Later Group has raised KES 500 million ($5 million) in a privately placed debt issuance. The startup will raise an additional KES 2 billion ($20 million) in equity and debt to fund its expansion plans in Kenya. It is currently crowdfunding $1.2 million in exchange for equity at a valuation of $30,000,000.

The five-year-old company is trying to raise $25 million, the same figure it previously raised in equity and debt from investors like Founders Factory Africa Platform Capital and others. But it is doing so at a time when VC appetite for growth and late-stage startups is lower than it has ever been. Lipa Later declined to share specific information on its $5 million debt issuance. The details of the individuals who have contributed to its ongoing $1.34 million crowdfund are easily found on the crowdfunding platform Republic.

In a press release seen by TechCabal, Eric Muli, the CEO and founder, said the funding, obtained from a diverse group of investors, will “enable us to enhance the infrastructure, making our financing solutions even more accessible and convenient for our customers”. 

Despite the discouraging VC funding scene, the five-year-old company is very optimistic about its future. “With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” Muli said.  

Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!

Ngozi Chukwu Reporter

Get the best African tech newsletters in your inbox