The Mexican pre-owned car start up, KAVAK has reached a $4 billion valuation after raising $485 million in its new funding. Making it one of the fast expanding company and highly valued startups in Latin America.
The company was created by a group of young entrepreneurs it is an online platform that offers an exceptional experience of buying and selling pre-owned cars in Mexico with the best prices in the market. With KAVAK, buying or selling cars in Mexico is easier than ever.
KAVAK was founded in the year 2016, It was backed by Japan’s SoftBank Group Corp, this new investment will help KAVAK to launch in Brazil in couple of months said the ceo of KAVAK.
Carlos Garcia Ottati, The Founder and Chief Executive Officer of KAVAK said:
“We definitely foresee Brazil as the biggest market for Kavak, Crossing the Atlantic is one of our ambitions,” Garcia said. “We see a lot of markets – in Europe, in Southeast Asia, the Middle East – where we could have significant value.”
“We’re going through the growing phase, We’re a long way from having the product where we need to be.”
After KAVAKS funding round has led U.S based investment firm D1 Capital Partners, Ribbit Capital, Bond Capital and Founders Fund.
KAVAK had previously launched financing arm KAVAK Capital and the CEO said 60% of new customers used that in-house option, which offers interest rates from 14% to 20%, compared with traditional options that he said offer rates as high as 60%.
The speedy expansion has also brought its challenges, with some users complaining on social media of poor customer service.
Garcia said he recognised the need for more employees to handle such issues, and recruited 1,500 people in Mexico in the past three months, bringing Kavak’s workforce to 2,500.
In next Twelve Months The company will try to expand elsewhere in Latin America
