The funding will help Kovi grow its team and explore growth opportunities in Latin America. Here are the top-line bullets you need to know.
Kovi, a car rental startup, has raised $104M in Series B funding. The round drew participation from Valor Capital Group, Prosus Ventures, Quona Capital, Broadhaven Capital Partners, and Norte Ventures, among others. The company also raised $20M in debt from undisclosed investors.
HOW’S THE COMPANY PERFORMING?
- Brazil-based Kovi is a car subscription platform that aims to make car ownership and rentals more accessible to drivers in Latin America. The company also offers insurance and maintenance services to users.
- In 2020, the company reportedly experienced a 70% increase in its user base, with 11,000 users registered in Brazil and Mexico. It now has an operational fleet of 12,000 cars, which the company rents from OEMs like Toyota and Volkswagen.
- With 15% month-over-month growth, Kovi claims its ARR (annual recurring revenue) is around $45M.
- It currently employs 700 people, with operations spread across Brazil and Mexico.
WHY DOES THE MARKET MATTER?
- The global car rental market is projected to grow at a CAGR of 6.7% to reach a value of $144.21B by 2027, according to Fortune Business Insights.
- The Covid-19 pandemic has driven the adoption of commute options that allow for social distancing. This, along with the rise in technologies that have made smartphones accessible and rental bookings more convenient, has resulted in rising demand for app-based car rental platforms.