Engage Capital, a Kenyan-focused venture capital firm, has made a $24.5 million offer to acquire Lipa , a Kenyan buy-now-pay-later startup that went into administration in March 2025 after failing to raise new capital, according to three people familiar with the matter.
Engage Capital sent a letter of intent (LOI) to Lipa in mid-May, proposing to acquire Lipa’s technology platform, customer base, intellectual property, and operating licences. The deal, still subject to due diligence, would also see the firm pay some of Lipa ’s liabilities, excluding bad loans.
“Total Consideration: $24,500,000. Proposed Structure: Acquisition of Target’s fintech platform, customer base, intellectual property, license acquisition, clearance of company liabilities, loan book and associated operations,” Engage Capital LOI seen by read.
If the deal goes through, it could mark a rare turnaround for a Kenyan startup under administration. A successful sale could break that pattern in a market where insolvency often spells the end, dragged by legal battles, mounting debts, and administrators’ lack of urgency.
Founded in 2018 by Eric Muli and Michael Maina, Lipa had strong investor backing, raising $16.6 million across 10 rounds, including $12 million in seed funding in January 2022 from Cauris and al Frontiers. Earlier rounds saw pre-seed investments from Orbit Startups in 2021 and Founders Factory Africa in 2019.
Despite early investor confidence, the company’s business model faltered. It failed to raise new funding in 2024, leaving it unable to meet payroll or settle mounting supplier debts.
A former executive familiar with the process told that takeover talks began before Lipa was placed under administration in March 2025. Since then, the court-appointed administrator, Moore JVB Consulting, has also actively engaged potential investors.
Lipa co-founder Eric Muli confirmed to that acquisition talks are ongoing, but declined to provide further details, citing the pending court process.
A deal with Engage Capital, if concluded, could salvage what remains of Lipa ’s once-hyped model, which allowed consumers to buy electronics and other goods on instalment while the startup paid retailers upfront. At its peak, Lipa operated in Kenya, Uganda, and Rwanda, and had plans to expand into Nigeria and Ghana.
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