Kavak becomes the first Mexican startup to become a 'unicorn'
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The used car platform Kavak became the first startup to achieve a valuation 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 founding, the pre-owned vehicle buying and selling platform surpassed the value of one billion dollars thanks to its most recent round of capital investment in September 2020.
The startup was co-founded in 2016 by Carlos García Ottati in Mexico City where it began operations with only three vehicles. A year later, Kavak opened the largest vehicle reconditioning center in Mexico, located in Lerma, State of Mexico, and today, with a national presence, it is the leading company in the purchase and sale of pre-owned cars in Mexico.
“We are very proud of what we have built, we know that this is an important milestone for us and for the entrepreneurial ecosystem, but we also know that our story is just beginning and we have a lot to build and many clients still to satisfy. We are not going to stop until we transform the automotive industry in the world, ”Carlos García, who now serves as CEO of the brand, said in a statement.
Kavak works as a vehicle buying and selling platform that facilitates processes and paperwork, generating a personalized financing and guarantees system for each client. This model was strengthened with the reconditioning of vehicles for sale to the public.
Kavak's system, according to the same brand, generated exponential triple-digit growth, backed by world-class investors such as Softbank, Greenoaks, DST Global, Kaszek Ventures, QED investors, General Atlantic, among others.
With his latest investment, Kavak becomes Japan's SoftBank's latest investment to become a unicorn, after Brazilian delivery firms Loggi and gym membership Gympass, and Colombia's Rappi delivery service.
Kavak currently has more than 700 employees and dozens of branches nationwide, where the two vehicle reconditioning centers in Lerma, State of Mexico and Guadalajara, Jalisco stand out, as well as its headquarters in Buenos Aires, Argentina, product of its merger with the company Checkars.