Kenya’s Lipa Later enters administration three months after raising $9.88M

Privet,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

• Paystack’s Zap faces trademark battle with Zap Africa
• Kenya’s Lipa Later enters administration
• MTN tests satellite-to-mobile calls in South Africa

Kenya’s Lipa Later enters administration

Lipa Later, a Kenyan digital consumer credit provider, is officially under new management. Joy Vipinchandra Bhatt from Moore JVB Consulting has stepped in as the company’s administrator, taking over on March 24, 2025. Consequently, any major decisions about the business or its assets have to go through Bhatt or their team. In short, the old management is no longer in control.

This move comes just three months after Lipa Later raised KSh1.36 billion ($9.88 million) in debt and equity funding to expand across Africa. At the time, it seemed like a big win. But behind the scenes, the company was already struggling, according to reports. Employees went months without pay, suppliers were chasing unpaid invoices, and at least one legal battle over outstanding debts put everything out in the open.

One lawsuit, filed by London-based consultancy Africa Foresight Group (AFG), was particularly damning. Lipa Later had hired AFG in 2022 for a market report but then refused to pay the $13,516 fee, claiming the work was subpar. The Kenyan High Court wasn’t bu.ying it. In December 2024, the judge ruled against Lipa Later, noting that internal company emails showed they had already admitted to the debt.

Then there was the trade secrets drama. In March 2024, court documents revealed Lipa Later had accused a former employee of jumping ship to competitor Craft Silicon Kenya and possibly taking confidential information with them. The employee, who left in July 2023, soon after helped launch a competing BNPL product at their new company. Lipa Later tried to block them from working at Craft Silicon, but the court threw out the case due to lack of solid proof.

On top of all that, Lipa Later’s decision to acquire struggling eCommerce platform Sky.Garden for KSh 250 million ($1.9 million) in December 2023 left many scratching their heads. Well, this came after the company raised $12 million in pre-Series A in 2022. But why take on another struggling company when money was already tight? Looking back, it may have only made things worse.

Now, Bhatt has a tough job ahead. Creditors have until April 23, 2025, to submit their claims, while the administrator figures out if Lipa Later can be saved through restructuring or if selling the business, or even shutting it down entirely, is the only way forward. One thing’s for sure: the once-thriving startup is in hot water, and its future is hanging by a thread.

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Paystack’s Zap faces trademark battle with Zap Africa

On Monday, Paystack launched a new consumer product called Zap by Paystack. But three days later, a Nigerian cryptocurrency startup, Zap Africa, threatened them with a lawsuit, claiming trademark infringement.

Now, things are getting messy. Yesterday morning, Paystack fired back with a cease and desist notice to Zap Africa, responding to online chatter about the alleged trademark violation. Zap Africa argues that Paystack didn’t do its homework before choosing the name and should have verified whether “Zap” was already taken.

But someone at Paystack, speaking anonymously to Condia, says that’s not the case. According to them, Paystack knew Zap Africa existed and conducted proper due diligence before launching the product. “We’re confident that we filed for the trademark in the right category,” the source explained, adding that Paystack registered Zap under multiple classes, including financial service, where Zap Africa reportedly has no trademark claim.

Reports show that Paystack officially filed for the Zap trademark and logo on December 4, 2023, covering six categories like financial and monetary affairs, insurance, and estate services. A quick search on Nigeria’s Corporate Affairs Commission (CAC) database also shows that dozens of businesses use ‘Zap’ in their name, making it far from exclusive.

Another complaint from Zap Africa is that Paystack’s new product is causing confusion among its users. But Paystack isn’t buying that argument. The source pointed out that “Zap” is a widely used term, not something any single brand can own. In fact, over 40 businesses in Nigeria have “Zap” in their name, and trademark records show that a company registered a Zap-related trademark as far back as 2008, long before Zap Africa came along.

For now, both companies are refusing to back down, and it’s anyone’s guess how this will end. But one thing’s for sure: Zap by Paystack isn’t having the smooth launch they probably imagined. Oh, and you should totally ask Bolu, because I saw him and a few others ranting on X about the transaction fees. 

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MTN tests satellite-to-mobile calls in South Africa

MTN South Africa and satellite service provider Lynk Global just pulled off something big: one of the first-ever satellite-to-mobile phone calls in South Africa. The test call, made in Vryburg, North West, was about checking voice quality and SMS capabilities over a low-earth orbit (LEO) satellite connection.

The trial got the green light from the country’s communications regulator ICASA, which approved the use of MTN’s licensed IMT spectrum for the test. Per MTN South Africa CEO Charles Molapisi, this is part of their mission to improve coverage in remote and rural areas that struggle with network access.

Molapisi said this proves that MTN can use LEO satellites to back up its existing cell towers and other infrastructure. If this technology takes off, it could help MTN reach its ambitious goal of 99% broadband coverage across South Africa.

Lynk Global’s chief commercial officer, Dan Dooley, highlighted just how groundbreaking this test was. He pointed out that it was the first time in Africa that a satellite call was made using a regular mobile phone. Yeah, no fancy satellite devices needed.

Older satellite calls required bulky, expensive equipment with special antennas because they relied on geosynchronous (GEO) satellites orbiting 35,786 km above Earth. But LEO satellites are much closer, between 160 km and 2,000 km, which means lower latency and faster data transmission — perfect for real-time communication like video calls and online gaming.

Beyond better coverage, this tech could also be a game-changer for mass alerts in remote areas. Think weather warnings, health advisories, and emergency updates sent straight to people’s phones, no matter where they are. If this trial is anything to go by, the future of mobile connectivity in South Africa is looking pretty exciting.

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Have a fun weekend!
Victoria Fakiya for Techpoint Africa.