Mexican startup Kavak has raised US$485 million in a new round of fundraising, increasing its valuation to a staggering $4 billion.
The new proceeds will be used to expand operations in Brazil, where the company says it made a “soft-launch” recently.
Founded in 2016 by Roger Laughlin, and Carlos and Loreanne García Ottati, Kavak come to the limelight for the first time in 2019 when it received funding from the Japanese conglomerate Softbank.
Kavak is in fact a used car broker that brings together both sellers and buyers online. Once a buyer finds interest in a car put up for sale on its site, he can visit the broker’s dealership centers, where vehicles are appraised and documented.
Kavak offers 15 months of warranty on the cars it sells and gives the buyer seven days for testing the vehicle.
Such a model for car sales has been proved successful in the United States as well as several European countries.
“Our goal is simple: to make the experience of acquiring and owning a car incredible,” says Carlos García Ottati, CEO of Kavak, in a press release.
“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.”
Over the past two years, Kavak’s headcount has increased sixfold, from 400 to 2,500 people.