Peach Cars, a Kenyan automotive tech startup, has secured $11 million in Series A funding to expand its operations and improve consumer confidence in Africa’s fragmented and informal used car market.
The new funding follows its earlier $5 million seed and will support the company’s mission to create a transparent, customer-centric vehicle marketplace that simplifies the car buying and selling process across the continent.
The investment round was led by Suzuki Global Ventures (SGV), with participation from the Japan Bank for International Cooperation (JBIC), Gogin Capital, and a follow-on investment from the University of Tokyo Edge Capital Partners (UTEC). This funding round highlights the growing investor interest in digital platforms that provide structured and scalable solutions within Africa’s automotive sector.
Founded in 2020 by Kaoru Kaganoi and Zachary Petroni, Peach Cars is an e-commerce platform aimed at revolutionizing car ownership in Sub-Saharan Africa, particularly for locally used vehicles. The company strives to build trust and transparency in the used car market by offering services such as vehicle inspections, transparent pricing, financing options, and after-sales support. Essentially, Peach Cars acts as a marketplace that connects buyers and sellers of used cars while providing a range of related services.
Customers can access pre-vetted vehicles, receive help with administrative paperwork, and benefit from secure payment systems, which greatly reduce the risks typically associated with informal car transactions.
“We are building a platform where trust and transparency are central to every transaction,” said Kaoru Kaganoi, co-founder of Peach Cars. “This funding allows us to enhance the customer experience and expand our model to serve more markets across Africa.”
The support from Suzuki Global Ventures aligns with their strategic vision, as they see Peach Cars playing a crucial role in developing automotive infrastructure across emerging economies in Africa. “We are extremely impressed with Peach’s ‘customer-first’ ethos and their ability to operate with integrity in one of the most complex automotive markets in the world,” said Mike Sarchet, Senior Director at SGV. “This investment reflects Suzuki’s broader strategy: Africa is our next India, and Peach Cars is building the infrastructure we want to be a part of.”
The African used car market is worth billions of dollars annually, yet it remains largely informal. Many consumers lack access to reliable vehicle information or safe financing options. Peach Cars’ tech-driven approach aims to provide scalable solutions to these long-standing challenges.
With the new funding, Peach Cars intends to strengthen its presence in Kenya, expand into other African countries, and invest in AI-powered tools for vehicle inspections, pricing, and matchmaking between buyers and sellers. As digital innovation transforms Africa’s automotive landscape, Peach Cars positions itself at the forefront of a trust-based, consumer-friendly future for used car transactions.
