Kavak rakes in $ 485 million and quadruples its valuation in just four months

Kavak  quadrupled its valuation of 1,150 million dollars to 4,000 million dollars , becoming the fourth most valuable startups in Latin America.

The above, after completing its most recent funding round in January 2021, just four months after becoming the first unicorn startup in the history of Mexico, in October 2020.

The leading company in the used car market in Latin America is led by Carlos García Ottati, CEO and co-founder of Kavak, who announced that in just four years in the leading automotive e-commerce in Latin America , and now, with the support of D1, Ribbit, Bond and Founders Fund , closes its series D adding more than 485 million dollars , adding a total of 900 million dollars of private capital obtained from the beginning of the company, which will be used to continue the revolution of the pre-owned car market in the region.

Kavak's  revolutionary model seeks to formalize the used car market in Latin America , guaranteeing reliable transactions that help reduce the risks of fraud, mechanical and security problems.

In addition, the company enabled massive access to financing through its financial technology division, Kavak Capital , built on data technology and artificial intelligence , becoming one of the leading financial inclusion institutions in the region.

Kavak has multiplied its number of employees by six in the last year: from 400 to 2,500 people, who operate 20 logistics and refurbishment centers in Mexico and Argentina, laying the foundation for an unprecedented expansion plan in the region. 

The amount raised in this Series D will  allow this plan to be carried out in the short term, starting in Brazil and following other emerging markets around the world.

"We are focusing all our efforts on providing the best customer experience on a global scale. It is not acceptable that people in emerging markets do not have access to the right financial solutions, and are exposed to fraud when buying, selling or maintaining a car. We really want to transform this; a car is a tool that can improve your personal and professional life in an instant, "he said.

This $ 485 million series has been spearheaded by D1 Capital, Ribbit, Bond, and Founders Fund , leading investment funds with the most representative venture capital holdings in the Latin American region.

The company plans to implement its business model in international markets in the next 24 months; sees a clear opportunity in Latin America, but also in other emerging markets worldwide, where people have similar needs and where Kavak can become a key ally for local economies in the formalization of the automotive industry.

The CEO of Kavak stated that the goal is to make the experience of acquiring and owning a car effective , through fast and secure access to the best cars and financing options. 

"These resources will be essential to accelerate our expansion in Latin America, starting in Brazil and other potential emerging markets, where Kavak will represent a safe solution in countries that present problems similar to those of Latin America," he said.