SoftBank-backed tech unicorn Kavak expands in Middle East


Mexican online used-car dealership Kavak has expanded to the United Arab Emirates (UAE), Oman and Saudi Arabia, boosting its presence in emerging-market countries, the firm's chief executive, Carlos Garcia, told Reuters on Tuesday.
Kavak plans to invest $130 million over the next two years in the three Middle-Eastern countries, which are set to represent 7-10% of its business, Garcia said.
The SoftBank-backed platform, which is valued at $8.7 billion and claims to be the most valuable startup in Latin America, entered the UAE and Oman through a merger with local company Carzaty. It set up its own operations in Saudi Arabia.
"The consumers of these three markets are looking for luxury cars at lower prices... so used cars in excellent condition are an option they would opt for," Garcia said.
Garcia said some 40% of transactions in the used-car market end in fraud and Kavak's algorithm can help guarantee safe sales and create a price structure for a "virgin" market.
The used-car market is worth an estimated $35 billion-$40 billion in Gulf countries, according to company data.
Kavak, which buys used cars, fixes them up and resells them, has grown quickly in its six years of existence and now operates in 10 countries.
In July it announced a $180 million investment to expand into Chile, Colombia and Peru, as well as Turkey, its first venture outside Latin America.
However, its fast-paced growth has encountered some speed bumps along the way. Kavak cut more than 100 jobs from its Brazilian offices in June and has faced criticism online about its customer service in Mexico.
"We recalibrate our workforce every year," Garcia said, asked about the layoffs. He said customer satisfaction levels have risen in Mexico, with around 70% of users recommending Kavak after purchasing services.
Kavak is not planning any additional expansions this year and will focus on its existing operations.
Trending News
Latest News
- car&bike Team | Oct 6, 2025Skoda Octavia RS Preorders Open Online, Reservation Amount Set At Rs 2.50 LakhOn the first day of the reservation window opening, Skoda has already received over 100 pre-bookings for the spicy sedan, carandbike has learned.1 mins
- Janak Sorap | Oct 6, 2025Triumph Speed 400 and Speed T4 Prices Slashed Ahead of Festive SeasonThis strategic decision aims to boost accessibility, sales and strengthen customer trust during the festive season.1 mins
- car&bike Team | Oct 6, 2025TVS Apache RTX 300 Adventure Launch Details RevealedThe TVS RTX 300, the brand’s much awaited adventure touring motorcycle, will be launched on October 15, 2025.1 mins
- Jaiveer Mehra | Oct 5, 2025Auto Sales September 2025: Tata Motors Jumps To No. 2; Maruti Domestic Sales Down Year-On-Year; Hyundai Reports Flat SalesSeptember was a bit of a mixed bag for carmakers in the domestic market though the GST 2.0 implementation has brought increased footfalls and bookings.6 mins
- car&bike Team | Oct 4, 2025Maserati MCPura Launched In India At Rs 4.12 CroreThe MCPura Cielo convertible is priced at Rs 5.12 crore (ex-showroom).2 mins
- car&bike Team | Oct 4, 20252025 India Bike Week To Be Held On December 12-13 In Vagator, GoaThis will be the twelfth edition of the landmark event in India’s motorcycling calendar.2 mins