Tokyo-based Hakki Africa, the Japanese startup offering micro-finance services for cab drivers in Kenya, announced on Tuesday that it has secured 1.58 billion yen (about $10.6 million) in the 1st close of its series B round. This round is led by SBI Investment with participation from QR Investment (by Hokkoku Financial Holdings), Deepcore, Hakobune, Music Securities in addition to debt from an undisclosed Japanese megabank and Hokkoku Bank.
For the company, this follows their seed round in December of 2020 (secured 30 million yen) and Series A round in March of 2022 (secured 220 million yen including debt). The latest round brought their funding sum up to date to more than 1.83 billion yen (about $12.3 million).
In Africa, it is very difficult to borrow unsecured loans due to the underdevelopment of financial services. The company offers a micro-finance service focused on used cars in the continent, especially in Kenya. It offers a loan screening based on a cab driver’s credit rating, with points deducted for multiple debts based on the history of the M-PESA mobile money usage, and points added for stability of cab sales on a weekly basis, offering the opportunity to purchase a car.
In this particular area, some of our readers may recall a startup called Moove, offering vehicle financing to private business owners in several African countries. Backed by Japan’s Mitsubishi UFJ Innovation Partners, the company recently secured $10 million in debt in August this year.
via PR Times