Venture Capital: Mexican Used-Car Platform Kavak Scoops $700M At $8.7B

September 22, 2021 | Latest News, News, Venture Capital
https://dailyalts.com/wp-content/uploads/2021/09/Kavak-Screengrab.jpg

Kavak becomes the second most valuable start-up in Latin America.

Mexican used-car platform Kavak said it had raised a $700 million Series E round at a valuation of $ 8.7 billion which more than doubled from its previous funding. The round was led by U.S. venture capital firm General Catalyst, while SoftBank Group Corp, billionaire Peter Thiel’s Founders Fund, Singapore-based gaming and e-commerce company Sea Ltd, Tiger Global, Spruce House, hedge fund D1, and Ribbit Capital also participated. (Reuters)

Kavak’s used car app allows users to browse, purchase and finance preowned cars at the click of a button on a smartphone.

There appears to be global interest in the prospects of used-car platforms. Last week, the Indian used car platform Cars24 raised $450 million comprising a $340M Series F equity round and $110M of debt.

The capital funding valued the startup, founded in 2015, at $1.84 billion, nearly twice from the end of last year. SoftBank also participated in the funding of Cars24.

Kavak

Kavak previously raised $485 million in a Series D round at a $4 billion valuation. At its current valuation of $ 8.7 billion, Kavak is the second most valuable start-up in Latin America, behind Brazilian fintech Nubank which was last valued at $ 30 billion.

According to TechCrunch, Kavak has doubled its revenue every 3 to 5 months, and over the last 14 months, has grown from 300 to over 5,000 employees in Latin America.

“The company has developed a playbook for providing a transformational customer experience with a compelling and efficient economic model,” said General Catalyst Managing Director Adam Valkin in a statement. “We are excited for Kavak to expand into other emerging markets where a similar opportunity exists to drive financial inclusion and empower the middle class through access to car ownership.”

Related Story: Buffett’s Berkshire Invests $500M In Brazilian Digital Bank Nubank’s $750M Extension Round

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/10/1024px-North_Dakota_Flaring_of_Gas.jpg
Digital Assets: Russian Energy Firms Seek Go-Ahead To Use Flared Gas For Mining Crypto
October 22, 2021     Digital Assets, ESG and Sustainability, News

Russia’s crypto mining industry is in expansion mode after China’s clampdown on its crypto miners. Also wanting to join the party are Russian oil and gas companies that flare, or…

https://dailyalts.com/wp-content/uploads/2021/10/archive-g1a80093d6_640.jpg
Artificial Intelligence: Rossum, The Document AI Company, Raises $100M
October 22, 2021     Artificial Intelligence, News, Venture Capital

Rossum offers an end-to-end AI document processing solution that combines its cognitive data capture platform with a full suite of integration capabilities to automate document-based communications between diverse businesses. The…

https://dailyalts.com/wp-content/uploads/2021/10/equal-gd63ae6939_640.png
Alternative Investments/ESG: New York Life Floats ETFs For Gender Equality, Clean Oceans, Cleaner Transport

The three thematic ETFs meet investor demand for ESG approaches. IndexIQ, the New York Life Investments company, announced Wednesday the launch of three new ETFs. The IQ Engender Equality ETF…

https://dailyalts.com/wp-content/uploads/2021/10/ecommerce-gb64d16291_640.jpg
FinTech: Wells Fargo Invests $10M In Cloud Payments Provider Volante
October 21, 2021     FinTech, News, Venture Capital

Volante Capital, a provider of cloud payment services and financial messaging, announced Wednesday an investment of $10 million by Wells Fargo Strategic Capital. Wells Fargo joins Wavecrest Growth Partners, BNY…