Kavak's total funding now stands at $1.19B. Here are the top-line bullets you need to know.
Kavak, an online marketplace for used cars, has raised $700M in a Series E. The round drew participation from SoftBank Group, Tiger Global Management, General Catalyst, and Ribbit Capital, among others.
HOW’S THE COMPANY PERFORMING?
- Mexico City-based Kavak operates an online marketplace for pre-owned cars. It uses AI-driven technology to make transactions more transparent and secure.
- The startup also offers financing via its fintech arm, Kavak Capital.
- The company operates 40 logistics and reconditioning hubs across Brazil, Argentina, and Mexico.
- Kavak currently has over 5,000 employees across Latin America.
WHY DOES THE MARKET MATTER?
- The global used car market is projected to grow at a CAGR of 5.5% to reach a value of $2.15T by 2027, according to Grand View Research.
- Online sales of used cars account for about 22% of total market share and are expected to be a key driver of future industry growth.
- The Covid-19 pandemic has accelerated digitization in the auto retail space, as 61% of consumers are now open to buying a car online, up from 32% before the pandemic.