Peach Motors, a Kenyan auto marketplace announced that it has raised $5 million in a seed funding round led by Japan-based The University of Tokyo Edge Capital Partners (UTEC) and 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).
Founded in 2020 by Kaoru Kaganoi and Zachary Petroni, Peach Motors says it is building the infrastructure to power improved trust, transparency, and customer experience in the growing used-vehicle market across Sub-Saharan Africa to revolutionize car ownership.
According to Peach Motors in a statement, the startup intends to use the funds to scale the business, hire more talent and double down on R&D as it expands its tech solutions.
Peach Motors will be coming against the likes of JiJi and Cars45 in the East African market and hoping that it has learnt a few lessons from the ones that once threaded the roads of Kenya such as Cheki.
According to the CEO Kaoru Kaganoi, the Kenya market lacks established car inspection methods and service providers and Peach Motors is working towards providing transparency and a better experience to Kenya’s car ownership and maintenance process.
The company claims to have introduced an innovative smart engine check device that harnesses Peach’s exclusive software to automate the car inspection process. This advanced technology incorporates a comprehensive 225-point inspection system, designed in accordance with the high standards set by the Japanese auto industry. Given that 80% of cars in Kenya are of Japanese origin, this system provides a detailed and precise report on all the vehicle’s systems, ensuring a thorough assessment.
When compared to Jiji, Zachary Petroni says that Peach has an edge because it educates users on the car ownership lifecycle, has faster discovery processes with better transaction and payment management and, most importantly, car maintenance and servicing.
The car marketplace generates revenue through service fees and commissions earned from successful transactions conducted between sellers and buyers. In addition to these primary sources of income, the platform also offers value-added services that contribute to its revenue streams. These services include handling administrative tasks related to transactions, facilitating inspections, managing change of ownership processes, ensuring secure payment transactions, and overseeing smooth handovers between parties involved.
