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Kavak is the first Mexican startup to become a unicorn.

October 1, 2020

Four years after its inception, the used car buying and selling platform surpassed $ 1 billion in value thanks to its latest round of capital investment in September 2020.

3 min read


Kavak is the first Mexican startup to become a unicorn.
Kavak is the first Mexican startup to become a unicorn.

The used car platform Kavak was the first startup to reach a value of more than $ 1.1 billion in Mexico, that is, what is known as a unicorn: a technology company valued at more than $ 1 billion.

Four years after its inception, the used car buying and selling platform surpassed $ 1 billion in value thanks to its latest round of capital investment in September 2020.

The startup was co-founded by Carlos García Ottati in Mexico City in 2016 and started up with just three vehicles. A year later, Kavak opened the largest vehicle overhaul center in Mexico in Lerma, Mexico state. Today, with its national presence, Kavak is the leading company in buying and selling used cars in Mexico.

“We are very proud of what we have built. We know this is an important milestone for us and the business ecosystem, but we also know our story is just beginning and we have to build a lot and keep a lot of customers happy. We won’t stop until we change the automotive industry in the world, ”said Carlos García, who is now the brand’s CEO, in a statement.

Kavak acts as a platform for buying and selling vehicles, simplifying processes and paperwork and generating a personalized financing and guarantee system for each customer. This model has been strengthened with the overhaul of the vehicles for sale to the public.

Kavak’s system saw exponential triple digit growth, according to the same brand, backed by world class investors such as Softbank, Greenoaks, DST Global, Kaszek Ventures, QED investors and General Atlantic.

With his latest investment, Kavak becomes the latest investment by Japanese SoftBank in a unicorn, after the Brazilian delivery company Loggi and the fitness studio member company Gympass as well as the Colombian Rappi delivery service.

Kavak currently has more than 700 employees and dozens of offices across the country. The two vehicle overhaul centers in Lerma, State of Mexico, and Guadalajara, Jalisco, are characterized by the merger with the Checkars company, in addition to the headquarters in Buenos Aires, Argentina.

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