Lipa Later, a ‘Buy Now Pay Later’ company has acquired e-commerce platform SkyGarden in its latest move to diversify its investment portfolio.
Despite not disclosing the transaction value, Lipa Later CEO Erick Muli said following the acquisition the venture will require $6 million (Sh736 million) in investments to operate optimally.
Sky Garden had in October announced plans to exit the Kenya, but following the buyout, the Kenya-based e-commerce startup will be staying.
The e-commerce firm had filed for insolvency after it failed to raise extra capital in September.
“We know that Sky Garden has required about $6 million (Sh736 million) to operate in Kenya. We are well equipped to scale up the operations,” said Muli
Sky Garden is an online marketplace that connects small businesses to buyers in an end-to-end system that encourages the Do-it-Yourself (DIY) model of business. It generates income by charging eight percent on every successful transaction.
SkyGarden which has raised north of $6,000,000 prior to this acquisition, will now be fully owned by Lipa Later Group and will continue to operate using its name.
With the acquisition of SkyGarden, Lipa Later says it is now in a position to provide a comprehensive e-commerce solution to consumers.
The buy now pay later firm will looking to leverage on the already established Sky Gardens infrastructure and market presence to scale up.
“Last month, we saw no other option than to file for insolvency,” Martin Majlund, founder of Sky Garden, reiterated.
“Today, I’m happy to see that Sky Garden will live on with new owners and new management,"he said.
He said they had built a great product over time, and I believed Lipa Later has the potential to take Sky Garden to the next level.
Majlund said through this acquisition, the vision of Sky Garden will continue to live on while retaining jobs and businesses on our platform.
This acquisition is a key step forward in Lipa Later’s efforts in joining the e-commerce space.
The acquisition of SkyGarden by Lipa Later presents a great opportunity for both companies to benefit from each other's strengths and further the growth of the e-commerce industry.
“With the combination of our expertise in financial services and SkyGarden's innovative e-commerce platform, the potential for growth is tremendous, and the impact this could have on the industry could be immense,” he added.
Majlund said plans are in place to see Sky Garden integrated across other Lipa Later countries of operation which include Rwanda, Uganda and Nigeria.