Cordia Directions, the Japanese operator of the Kenyan digital used-car marketplace Peach Cars, has raised ¥600mn ($3.7mn) in fresh debt funding from two Japanese state-backed financial institutions, bolstering its push to build a trusted vehicle transaction infrastructure in East Africa.
The Tokyo-based group said that the Japan Finance Corporation and the Shoko Chukin Bank had agreed to extend the loans, which follow a $11mn Series A equity round closed in June 2025. The new financing will be used to expand Peach Cars’ physical inspection hubs across Kenya, strengthen its vehicle appraisal technology and develop embedded auto-loan products for consumers in a market long plagued by opacity and fraud.
The Japan Finance Corporation, a state-owned policy lender, structured its portion of the facility to blend a startup support programme that includes stock acquisition rights with dedicated overseas expansion funds, giving it an equity-like feature. The Shoko Chukin Bank — a government-affiliated commercial bank focused on small and medium enterprises — separately approved its loan after conducting an on-the-ground business feasibility assessment, the company said.
Peach Cars was founded in 2020 by Kaoru Kaganoi and Zachary Petroni, both veterans of sub-Saharan Africa’s mobility sector. The platform operates as a full-stack digital marketplace that combines a 225-point vehicle inspection system benchmarked against Japanese quality standards with transparent pricing, secure payment channels and after-sales support. About 80 per cent of Kenya’s used cars are imported from Japan, making the quality-control heritage a natural advantage.
The new debt injection will underpin what the company describes as a “network of bases” in Kenya — physical locations where vehicles are inspected, appraised and handed over to buyers. It will also fund the development of proprietary auto-loan products, a critical missing link in a market where consumer credit is scarce and informal lending carries steep risks.
“This fundraising will help improve the reliability of the used car market through the development of inspection systems and a network of bases,” Cordia Directions said in a statement. “It will also serve as a new model for Japanese financial institutions to support startups expanding overseas.”
The loans mark a further deepening of ties between Peach Cars and Japan’s policy finance apparatus. The Series A round in mid-2025 was led by Suzuki Global Ventures, the venture arm of Suzuki Motor Corporation, with strategic co-investors including the Japan Bank for International Cooperation — which made Peach its first African startup investment — and Gogin Capital, alongside follow-on backing from University of Tokyo Edge Capital Partners.
Kenya’s used-car market remains highly fragmented. Most transactions occur through informal brokers with little to no quality assurance, and the absence of reliable vehicle histories or financing options forces buyers to rely on cash and personal networks. Peach Cars’ pitch — a transparent, tech-enabled alternative — has drawn comparisons with platforms such as Autochek, though its integration of inspection, financing and logistics aims to cover the entire vehicle ownership lifecycle.
The company generates revenue from transaction commissions, inspection fees, ownership-transfer services and the sale of ancillary products such as spare parts and digital paperwork. Its leadership has signalled ambitions to expand beyond Kenya into other East and sub-Saharan African markets.
With the latest government-linked funding, Peach Cars positions itself not only as a commercial venture but as a test case for how Japanese state financial institutions can support high-risk, high-reward startup expansion into emerging markets through innovative financing instruments.