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Kenyan used-car marketplace Peach Cars has secured approximately Sh517 million (¥600 million/US$4 million) in debt financing from Japan Finance Corporation (JFC) and Shoko Chukin Bank, strengthening its balance sheet as it accelerates expansion across Kenya. The financing comes just over a year after the company raised an US$11 million Series A round led by Suzuki Global Ventures.
The fresh capital will be used to expand Peach Cars’ vehicle inspection network, improve access to auto financing, and scale its online marketplace. The company also plans to grow its branch footprint and invest further in its proprietary inspection technology, which is designed to bring greater transparency and trust to Kenya’s fragmented used-car market.
Peach Cars currently lists more than 1,500 vehicles and has built its business around comprehensive vehicle inspections, digital valuations, secure transactions, and financing services. The company says the latest funding will allow it to deepen these offerings while making car buying and selling more accessible for Kenyan consumers.
The lenders’ backing follows an on-the-ground assessment of Peach Cars’ operations in Nairobi. According to the company, executives from Shoko Chukin Bank visited its inspection facilities before approving the financing, citing confidence in the firm’s Japanese-quality inspection processes and locally built operating model.
The debt financing reflects growing interest from Japanese financial institutions in African mobility startups. Rather than raising additional equity, Peach Cars has opted for debt financing to fund its next phase of growth while limiting shareholder dilution, a strategy that could become more common among maturing African startups with proven business models.
