Mexican unicorn Kavak raises $ 485 million and quadruples its valuation in just 4 months

April 7, 2021, Mexico City - Kavak , the leading company in the used car market in Latin America, quadrupled its valuation from $ 1.15 billion to $ 4 billion, becoming the fourth most valuable startup in America Latina, after completing its most recent funding round in January 2021, just 4 months after becoming the first unicorn startup in the history of Mexico, in October 2020.

The company, led by Carlos García Ottati, CEO and Co-Founder of Kavak, has become the leading automotive e-commerce in Latin America in just four years, 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 since 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 6 in the last year: from 400 to 2,500 people, who operate 20 logistics and reconditioning centers in Mexico and Argentina, which lays the foundations 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, "said Carlos García Ottati, CEO of Kavak.

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

"Kavak has quickly become the leading and most trusted automotive brand in Latin America, and will still experience accelerated growth both in the region and in other international markets," said Dan Sundheim, Founder and Chief Investment Officer of D1 Capital Partners.

“We are really impressed by the vision of Carlos García Ottati and his team. Kavak is shaping up to become one of the most valuable startups in Latin America, ”said Napoleon Ta, partner at Founders Fund.

Kavak plans to implement its business model in international markets in the next 24 months; The company 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.

"Our goal is simple: to make the experience of acquiring and owning a car incredible, thanks to 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 ”, stated Carlos García Ottati, CEO of Kavak.

About Kavak

Kavak started the revolution in the automotive market in 2016, by creating a platform based on the use of data and technology, which allows buying, reconditioning and selling used cars through the internet or at the company's facilities, with all the guarantees of security and trust. After 4 years of operation, Kavak has become the first unicorn company in the history of Mexico, formalizing the used car market in Mexico and Argentina, breaking capital raising records in Latin America, with the support of investors such as Softbank , Greenoak, DST Global, Kaszek Ventures, QED Investors, General Atlantic, D1 Capital, Founders Fund, Ribbit, Bond and Founders Fund, to carry out expansion plans throughout the region. In addition, it has a business unit based on financing plans that promote financial inclusion in all users in the region.