Kavak secures USD 485 million in funding, eyes Latin America expansion

By Nikita Chaurasia  Date: 2021-04-08

Kavak secures USD 485 million in funding, eyes Latin America expansion

Kavak, a Mexico-based used-car platform, has reportedly reached a valuation of USD 4 billion after securing USD 485 million during a new funding round. This makes it the fastest-growing as well as the most valued company in Latin America.

The latest funding round saw participation from American investment firms such as D1 Capital Partners, Ribbit Capital, Founders Fund, and Bond Capital.

The fresh investments will allow Kavak to expand its reach in Brazil in the upcoming months, claimed the co-founder and CEO Carlos Garcia. Brazil, being the largest economy in Latin America, will provide significant revenue generation prospects for Kavak in the subsequent years.

For those unaware, Kavak was founded in the year 2016 and is backed by Japanese multinational conglomerate SoftBank Group Corp. It became the first tech startup to acquire unicorn status last year after it recorded a valuation of around USD 1 billion.

The company intends to simplify purchasing used cars in emerging countries where buyers usually struggle to obtain loans and dodge fraudulent activities. Kavak had launched its financing arm Kavak Capital last year, which allowed the company to offer interest rates of around 14-20% as compared to traditional interest rates of over 60%.

However, the speedy expansion came with its challenges, with several users criticizing the company for its customer service. Garcia added that to address these issues, the company has hired 1,500 people in Mexico since the last three months, bringing the company’s overall workforce to 2,500.

Apart from Brazil, Kavak is likely to expand its reach to other Latin American countries within 12 months, with additional plans for a global expansion in the next two years. In this context, Garcia claimed that expanding beyond the Atlantic is one of Kavak’s primary objectives.

Source Credits –

https://www.reuters.com/article/us-mexico-kavak/mexican-used-car-startup-kavak-hits-4-billion-valuation-idUSKBN2BU0FH

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

CDC updates guidelines, calls for vaccinated people to mask up

CDC updates guidelines, calls for vaccinated people to mask up

By Nikita Chaurasia

The Centers for Disease Control and Prevention issued new guidelines suggesting that people who are vaccinated against Covid-19 wear masks in public as well as indoor areas where the rate of the disease is high. The CDC also stated that teachers, sta...

iPhone’s hot streak could be hampered by global chip shortage crisis

iPhone’s hot streak could be hampered by global chip shortage crisis

By Nikita Chaurasia

Apple Inc. recently stated that the global chip shortage that has affected the sales of Macs and iPads, will now hit iPhone production and the expected revenue growth is likely to decelerate. This has resulted in lowering Apple’s shares. The c...

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

By Nikita Chaurasia

American electric vehicle maker Rivian Automotive LLC reportedly secured USD 2.5 billion in a funding round led by Amazon.com Inc, T. Rowe Price, D1 Capital Partners, and Ford Motor Co. In addition, the event also saw participation from Fidelity Man...

ICEA forms committee chaired by HP India MD to boost IT hardware sector

ICEA forms committee chaired by HP India MD to boost IT hardware sector

By Nikita Chaurasia

The India Cellular & Electronics Association (ICEA) recently announced the formation of a committee to promote manufacturing and exports of the IT hardware sector. The panel headed by Ketan Patel, HP India’s Managing Director, will set up a...

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

By Nikita Chaurasia

Amazon is reportedly planning to discontinue on-site Coronavirus testing for its warehouse employees in the United States. The retail giant confirmed slowing down the testing by 30th July and will only resume after receiving new guidelines change fro...