Kenyan startup Peach Cars on Thursday raised $11 million in a Series A funding round to expand its digital platform for used cars and build trust in East Africa’s automotive market.
Founded in 2020 by Kaoru Kaganoi and Zachary Petroni, Peach Cars seeks to address long-standing issues in Kenya’s second-hand vehicle market, including fraud, undisclosed defects and unreliable inspection services.
The Tokyo-based startup, Cordia Directions Inc., is focused on transforming how used cars are bought and sold across the continent.
Building trust through technology and transparency
The startup uses a proprietary smart engine check device and a 225-point vehicle inspection system based on Japanese automotive standards, ensuring buyers receive accurate and trustworthy reports.
This technology is vital because about 80 percent of vehicles in Kenya are Japanese imports.
Kaganoi shared, “I struggled to find good condition vehicles as there are no established inspection methods and service providers, and you need to know a good mechanic yourself to get these quality checks done at a personal level.”
Peach Cars operates as a consumer-to-consumer marketplace, focusing on transparency and customer education rather than just financing or asset management.
COO Zachary Petroni emphasised, “Customers would like to find truthful and transparent ways to maintain their vehicles; hence, Peach is accommodating its needs by providing the car care service”.
This approach aims to create a seamless experience from discovery to purchase and ongoing vehicle maintenance.
Expanding market reach and enhancing user experience
The $11 million funding will help Peach Cars deepen its presence in East Africa and build infrastructure to support its vision of becoming the continent’s most trusted used car marketplace.
The company has seen rapid growth, with monthly gross merchandise value exceeding $200,000, a tenfold increase over two years, and hundreds of cars sold through its platform.
UTEC – The University of Tokyo Edge Capital Partners led the prior seed round and continues to back the startup.
UTEC Principal Kiran Mysore said, “Peach is pioneering the most customer-centric, trustworthy, and advanced used-car platform in Sub-Saharan Africa by coupling their operational excellence with smart IoT devices and data analysis”.
Peach Cars generates revenue through transaction commissions, service fees, and value-added services such as ownership transfer assistance and secured payments.
In 2024, the company plans to open a near-fully automated inspection centre to improve vehicle quality verification and customer trust further.
The founders believe Africa’s growing middle class is eager for reliable and convenient automotive services.
Kaganoi stated, “The idea is why can’t we give everyone, whether you’re buying a car for $4,000 or $40,000, the same experience: a delightful one”.
This customer-first mindset drives Peach Cars’ ambition to democratise African car ownership.
This funding round positions Peach Cars to transform Africa’s used car market by delivering transparency, trust, and convenience to millions of buyers and sellers.