New Cars and Bikes in India

Softbank-Backed Used-Car Startup Kavak Becomes First Mexican Unicorn

The Mexico City-based startup has raised over $400 million in total funding since its founding four years ago, with Japan's SoftBank, Hong Kong's DST Global and U.S.-based Greenoaks Capital leading the recent round.

CEO Carlos Garcia Kavak has become Mexico's first tech startup after reaching a $1.15 billion valuation expand View Photos
CEO Carlos Garcia Kavak has become Mexico's first tech startup after reaching a $1.15 billion valuation

SoftBank-backed used-car platform Kavak has become Mexico's first tech "unicorn" after reaching a $1.15 billion valuation in its latest funding round last month, Chief Executive Carlos Garcia told Reuters. The Mexico City-based startup has raised over $400 million in total funding since its founding four years ago, with Japan's SoftBank, Hong Kong's DST Global and U.S.-based Greenoaks Capital leading the recent round, Garcia said in an interview on Wednesday.

The company is SoftBank's most recent Latin American investment to become a unicorn - lingo for tech startups valued at more than $1 billion - after delivery app Loggi and gym membership app Gympass, both from Brazil, and Colombian delivery app Rappi.

Japanese tech investor Softbank last year vowed to deploy $5 billion in the region, which Mexican investors praised as a potential game changer for young companies that struggle to fundraise locally.

ddsbl31o

Kavak, an online platform for buying and selling secondhand cars with operations in Mexico and Argentina

"It's really humbling for us to be the first Mexican unicorn. It's something really important for the ecosystem in Latin America, and especially Mexico," Garcia, 37, said.

Newsbeep

Kavak, an online platform for buying and selling secondhand cars with operations in Mexico and Argentina, is laying plans to launch in Brazil early next year, Garcia said.

Kavak entered Argentina in August through its merger with used-car platform Checkars.

After building the business gradually in Mexico, Garcia said he aims to scale up faster in Brazil, Latin America's biggest economy, with plans to hire 500 people within a year. Kavak employs some 800 people in Mexico and Argentina, a workforce that Garcia says will nearly double next year.

Despite the hit of the coronavirus crisis, Garcia said traffic has recovered to pre-pandemic levels as shoppers become more comfortable with e-commerce and seek alternatives to public transportation.

He expects Kavak to turn a profit in the next couple of years, and going public is in his sights, too.

"A route to do an IPO is in our plans... probably in the next two to three years we'd think about doing that," he said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

0 Comments

For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.

You might be interested in

New Car Models

BMW 2 Series Gran Coupe

Sedan, 19 Kmpl
BMW 2 Series Gran Coupe
Price Starts
₹ 39.3 - 41.4 Lakh
EMI Starts
₹ 81,580 9% / 5 yrs

Land Rover Defender

SUV, 14 Kmpl
Land Rover Defender
Price Starts
₹ 73.98 - 90.46 Lakh
EMI Starts
₹ 1,53,570 9% / 5 yrs

MG Gloster

SUV, 12.35 Kmpl
MG Gloster
Price Starts
₹ 28.98 - 35.38 Lakh
EMI Starts
₹ 60,158 9% / 5 yrs

Mercedes-Benz EQC

SUV, 471 Km/Full Charge
Mercedes-Benz EQC
Price Starts
₹ 1 Crore
EMI Starts
₹ 2,06,130 9% / 5 yrs

New Mahindra Thar 2020

SUV, 13 - 15.2 Kmpl
New Mahindra Thar 2020
Price Starts
₹ 9.8 - 13.75 Lakh
EMI Starts
₹ 20,343 9% / 5 yrs

Toyota Urban Cruiser

SUV, 17.03 - 18.76 Kmpl
Toyota Urban Cruiser
Price Starts
₹ 8.4 - 11.3 Lakh
EMI Starts
₹ 17,437 9% / 5 yrs

Kia Sonet

SUV, 18.2 - 24.1 Kmpl
Kia Sonet
Price Starts
₹ 6.71 - 11.99 Lakh
EMI Starts
₹ 13,929 9% / 5 yrs

Audi RS Q8

SUV, 8.2 Kmpl
Audi RS Q8
Price Starts
₹ 2.07 Crore
EMI Starts
₹ 4,29,698 9% / 5 yrs
Be the first one to comment
Thanks for the comments.