Kenyan startup Peach Cars has raised $5 million in a seed funding round, with Japan-based The University of Tokyo Edge Capital Partners (UTEC) leading the investment.
Other angel investors, including Shintaro Yamada (founder and CEO of Mercari), Peter Kenevan (VP, Head of Japan at PayPal), and Hiroaki Ohta (general partner at Japan’s Waseda University Ventures), also participated in the funding round.
Peach Cars, founded in 2020 by Kaoru Kaganoi and Zachary Petroni, aims to democratize car ownership in sub-Saharan Africa, starting with Kenya.
The newly raised funds will be used to drive the growth of startup’s business, expand its team, and focus on research and development to enhance its technological solutions, according to a statement released by the company. The company aims to address the challenges in Kenya’s used car market by providing a transparent and secure platform for buyers and sellers.
Before launching Peach Cars, the founders conducted thorough research and analysis to ensure the viability of the market. They recognized the importance of establishing operations and identified high-value asset classes in Kenya. Both founders have prior experience in the mobility space, having worked at the ride-sharing app SafeBoda. This experience helped shape their understanding of the industry and the need for customer-centric services.
The company aims to revolutionize the car ownership and maintenance process in Kenya by bringing transparency and an improved customer experience. The company has developed a smart engine check device that utilizes its proprietary software to automate the car inspection process. With a 225-point inspection system benchmarked against Japanese auto industry standards, Peach Cars provides accurate reports on the condition of vehicles.
While Peach Cars operates in the same industry as Autochek and Moove, it differentiates itself by focusing on the C2C (customer-to-customer) marketplace model, similar to Jiji. Peach Cars educates users about the car ownership lifecycle and offers faster discovery processes, streamlined transactions, and better payment management. It also provides car maintenance and servicing, ensuring that customers have a reliable and trustworthy platform for all their car-related needs.
Peach Cars generates revenue through service fees and commissions on successful transactions, along with additional value-add services such as administrative work for agreements, inspections, and change of ownership. The company has experienced significant growth since its launch, currently generating over $200,000 in gross merchandise volume (GMV) monthly, which is 10 times its figures from two years ago.
Kiran Mysore, Principal at UTEC, expressed enthusiasm for the investment, stating that Peach Cars is pioneering a customer-centric and advanced used-car platform in sub-Saharan Africa. UTEC aims to support Peach Cars by leveraging Japanese automotive expertise and network to foster collaboration between Japan and Africa.
Peach Cars has demonstrated its commitment to transforming the car marketplace in Kenya, and with this recent funding, it is well-positioned to continue its mission of providing a trustworthy and innovative platform for car buyers and sellers in the region.
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