Lipa Later Group acquires online retailer Sky.Garden for Ksh250 million

Online retailer Sky.Garden has relaunched following a Kshs 250 million buyout by the Lipa Later Group. The Lipa Later Group-backed investment in Sky.Garden has revamped its platform to introduce new features in it’s Ecosystem and aspires to connect 100,000 merchants in the next year.

Globally, social commerce is expected to grow three times as fast as traditional commerce to $1.2 trillion by 2025, up from $492 billion currently. Growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce spend by 2025. Social commerce is poised to take a large chunk of the e-commerce market as consumers gravitate to shopping on social apps.

Sky.Garden is no longer just about e-commerce; it's about revolutionizing the way businesses operate and people shop. Sky.Garden has now become a full-fledged e-commerce ecosystem, far beyond the boundaries of conventional online retail.

The Sky.Garden ecosystem encompasses not only the convenience of online shopping but also the infrastructure for local businesses to thrive. From seamless payment solutions to logistic support, marketing tools, and business insights. Entrepreneurs can build, grow, and expand their ventures within our ecosystem, while shoppers enjoy an unparalleled variety of products, services, and a shopping experience that continually evolves to meet their needs.

Juliet Wanjiru, Head of E-commerce, Sky.Garden: “Today marks a significant milestone in the evolution of Sky.Garden, as we embark on a transformative journey to enhance and broaden our offerings for both merchants and customer communities.”

By Introducing innovative products such as Sky.Tickets, Sky. Logistics, Sky. Commerce, and Sky.Wallet, we are diversifying our merchant categories to include a dynamic online marketplace for services and events. Notably, Sky.Wallet will offer tailored solutions, empowering merchants with access to financing, real-time transaction monitoring, direct bill payments (including utility bills and salaries), seamless deposits and withdrawals to Mpesa or Bank, and the ability to open a bank account. This ensures comprehensive financial support for businesses, powering all merchant transactions.

Sky.Logistics on the other hand ensures that we uphold our commitment to same-day delivery for customers.

Moreover, Sky.Garden is excited to announce that we are now making quality products accessible to consumers at affordable prices. Recognizing the evolving needs of our customers, we have introduced Buy Now, Pay Later, powered by LipaLater as a convenient alternative payment option, providing flexibility and ease in transactions. The first of its kind in Kenya.

In a significant leap forward, we are also thrilled to unveil our foray into social commerce. Sky.Commerce is set to revolutionize the online shopping experience by seamlessly integrating social interactions with e-commerce. This innovative platform will allow shoppers to discover, share, and purchase products directly within their social networks. Merchants on the other hand will be able to reduce their online interactions and make sales all the time from anywhere. As we continue to evolve, Sky.Garden remains dedicated to providing not only a marketplace but a dynamic and interconnected ecosystem for both merchants and consumers.

Addressing concerns about trust in online marketplaces, Sky.Garden remains steadfast in our commitment to building a secure and transparent platform.

Eric Muli, Group CEO Lipa Later: “Our group vision is to be a commerce catalyst for businesses and communities across Africa. We firmly believe that local ownership and operation are essential in understanding the needs of our people, contributing to the prosperity of our nation, and forging a true connection with our community. This local insight has empowered us to bring the vast world of e-commerce closer to Kenyans while simultaneously creating opportunities for local entrepreneurs and merchants to thrive.” 

The relaunch coincides with the rapid expansion of e-commerce markets in Kenya and other African countries, driven by factors such as increased internet penetration and more affordable data costs.

Growing internet access is expected to boost the African e-commerce market in the upcoming years. By 2030, the internet penetration in the region will reach an average of nearly 70%, according to Euromonitor — a considerable jump from 45% in 2023. Most of the access revolution is due to mobile connectivity with 83% of the African population currently covered by a mobile broadband network, according to GSMA.

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