Kenya-Based, Japanese Microlender 'Hakki Africa' Secures $12.7M as It Reaches Profitability

Reiji Kobayashi, Hakki Africa Co-Founder & CEO

Hakki Africa Inc. (Hakki), a Japanese mobility fintech providing microfinance solutions for taxi drivers in Kenya, has raised a new funding round, marking a key milestone as the company achieves profitability. The round was co-led by Global Brain’s Flagship Fund IX (GB-IX) and the Norinchukin Innovation Fund L.P. (NCIF), further underscoring investor confidence in Hakki’s model and expansion potential.

The company’s financing model seeks to address a longstanding challenge faced by taxi drivers in Africa — access to affordable vehicle ownership. In many African markets, including Kenya, taxi drivers struggle to secure loans from traditional banks due to a lack of credit history or collateral. Instead, they often resort to renting vehicles at high costs, significantly reducing their earnings. Hakki has developed a proprietary credit-scoring algorithm that leverages alternative data sources, such as M-Pesa mobile money usage and ride earnings stability, to provide affordable financing options for drivers looking to own vehicles.

Hakki’s microfinance model is built on a foundation of financial inclusion, offering drivers an opportunity to establish creditworthiness through consistent performance. By using technology to automate risk assessment and loan approvals, the company has managed to scale its operations efficiently, maintaining sustainable lending practices while mitigating default risks.

The latest investment follows a Series B funding round in 2023, during which Hakki secured 1.58 billion yen (approximately $10.6 million). That round was led by SBI Investment with participation from QR Investment (Hokkoku Financial Holdings), Deepcore, Hakobune, and Music Securities, alongside debt financing from an undisclosed Japanese megabank and Hokkoku Bank. The 2023 Series B funding took the company’s total funding rounds to 1.83 billion yen ($12.3 million). Investors in these earlier rounds included Samurai Incubate, Phals, and Headline Asia.

Global Brain, one of Japan’s most active venture capital firms, highlighted Hakki’s ability to build sustainable financial infrastructure in a complex and underserved market. The firm noted that Hakki’s profitability and operational efficiency were key drivers behind its investment decision. Global Brain intends to leverage its African market expertise and IPO advisory experience to support Hakki’s long-term growth.

Hakki’s expansion comes amid increasing competition in Africa’s vehicle financing sector. Companies such as Moove, a Nigeria-based vehicle financing startup backed by Japan’s Mitsubishi UFJ Innovation Partners, have also been scaling their presence across multiple African markets. Last year, Uber and sovereign wealth fund Mubadala invested $100 million in Moove, reflecting growing investor interest in mobility fintech solutions tailored to the African market. Moove has been active in Kenya since 2021. 

Founded in 2019 by Japanese entrepreneurs Reiji Kobayashi and Koji Tokida, Hakki Africa has positioned itself as a key player in bridging Africa’s financial inclusion gap. By leveraging alternative credit scoring and stable Japanese funding sources, the company aims to deepen its footprint in Kenya while exploring opportunities in other African markets.

The latest funding will enable Hakki Africa to expand its lending portfolio, enhance its credit assessment technology, and potentially enter new markets where vehicle ownership remains a challenge due to limited financing options. As the company continues to refine its microfinance model, it hopes to drive economic empowerment for thousands of taxi drivers, enabling them to achieve financial stability through vehicle ownership.

With investor backing and a proven track record of profitability, Hakki’s approach to mobility fintech offers a potential blueprint for addressing financial exclusion in other emerging markets beyond Africa.

Source: Launch Base Africa