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Kenyan Car Dealer Lands Ksh1.4 Billion From Suzuki to Fuel Expansion

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Peach Tech Cars
This milestone gives Peach the fuel to expand into new markets.
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Peach Tech, the Nairobi-based startup behind Peach Cars – the digital marketplace transforming used car transactions in Africa – has raised $11 million (about Ksh1.4 billion) in a Series A round led by Suzuki Global Ventures (SGV), the venture capital arm of Suzuki Motor Corporation. SGV’s investment enhances Suzuki’s presence in Africa’s mobility sector through Peach, signalling confidence in the continent’s emerging automotive opportunity.

Also joining the round are the Japan Bank for International Cooperation (JBIC), policy-based finance institution wholly owned by the Japanese government, and The Gogin Capital Co., Ltd., the venture capital arm of a major Japanese regional bank. Returning investor UTEC (The University of Tokyo Edge Capital Partners) doubled down with a super pro-rata investment, underscoring continued conviction in Peach’s model, team, and market opportunity.

Together, this consortium brings deep strategic value – from automotive expertise to marketplace innovation and long-term infrastructure capital. It’s a major show of confidence in Peach’s mission to build the trusted infrastructure for car ownership across Africa.

This milestone gives Peach the fuel to expand into new markets, build deeper trust infrastructure, and scale a platform that’s helping thousands of customers across Kenya make one of the most important purchases of their lives. “For most people across Africa, buying a car isn’t just a transaction – it’s a major life event,” said Kaoru Kaganoi, Founder and CEO of Peach. “This raise isn’t just capital – it’s a vote of confidence in an African mobility model that works.”

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Peach’s $11M round drew the backing of a diverse and influential group of global investors each bringing unique strategic value to the company’s next chapter. Suzuki Motors is Japan’s leading automaker and commands around 40% of India’s new car market – a feat that reflects deep operational expertise and success in emerging economies.

Through SGV, Suzuki Motors Corporation is now strengthening its strategic footprint in Africa, trusting Peach as a vehicle to catalyze the next generation of mobility across the continent. “We’re inspired by Peach’s founders, who have committed themselves to Africa and tackle local challenges with meticulous, on-the-ground execution. Africa is Suzuki’s next frontier after India, and a healthy, transparent secondary-car market is essential to our future growth on the continent,” said Mike Sarchet, a Senior Director at Suzuki Global Ventures.

JBIC provides a wide range of financing across the world from infrastructure to startups. Peach is the first African startup in JBIC’s Startup Investment Strategy – affirming its role as a launchpad for Japanese innovation on the continent. “Africa remains a region of significant potential for market expansion, underpinned by sustained economic growth and a steadily rising population, and Peach reflects the kind of high-integrity, high-impact business we want to back,” said a JBIC representative. “We’re excited to be part of a solution that could transform trust in Africa’s mobility ecosystem.”

Meanwhile, UTEC returns to the cap table with deepened conviction. “Peach has demonstrated a seamless blend of technology and operational excellence with customer centricity to achieve market leadership in Kenya’s online-used-car ecosystem,” said Kiran Mysore, a Principal at UTEC. “Having led their seed round in 2022, we are thrilled to deepen our commitment through this Series A investment alongside eminent strategic and institutional investors.”

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With this funding, Peach Tech will achieve full national coverage across Kenya, expanding its reach beyond Nairobi and into underserved counties as well as build the foundation for regional expansion into East and Sub Saharan Africa. It will also, among other things, open new service and inspection centres to boost vehicle quality

“At Peach, we’ve spent years building for the long game,” said Zachary Petroni, COO and Co-founder of Peach. “From infrastructure to operations, we’re designing a system that scales trust as much as it scales transactions. This raise allows us to deepen our commitment to customers while opening the door to even more innovation.”

Africa’s vehicle market is on track to more than double by 2030, but everyday buyers and sellers still face steep hurdles – unclear pricing, limited financing, and low trust in fragmented offline ecosystems. Peach Tech is tackling these challenges with a grounded, tech-enabled model built for the realities on the ground.  “This is what the next era of African tech looks like: disciplined, customer-centric, and built to endure,” said Kaoru Kaganoi, Founder and CEO of Peach.

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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