Mexican online used vehicle platform Kavak has successfully completed third financing round and, by achieving a value of $1.15 billion, has become the country’s first unicorn technology startup.
Founded in Mexico City in 2016, Kavak’s third investment round was led by Japan’s Softbank, and totaled $400 million in investments, according to the company’s co-founder and executive president Carlos García Ottati.
The company’s other two co-founders are Loreanne García Ottati and Roger Laughlin.
A previous investment round was led by private equity firms DST Global of Hong Kong, US-based Greenoaks Capital, Latin American venture capital firm Kaszek Ventures and General Atlantic.
Kavak works as a vehicle buying and selling platform that facilitates processes and paperwork, generating personalized financing and a guarantee system for each client.
The company’s business model was strengthened with the addition of a service offering the reconditioning of vehicles for sale to the public.
Since its founding, the company has generated exponential triple-digit growth.
“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,” García Ottati said.
Kavak currently has more than 700 employees and dozens of branches nationwide, as well as two vehicle reconditioning centers in Lerma, in Mexico state, and in Guadalajara, Jalisco.
The company also has offices in Buenos Aires, Argentina, as a result of its merger with local company Checkars.
Other Latin American unicorns include Loggi, a delivery app Company, Gympass, a gymnasium membership startup, both of which are Brazilian, and Rappi, the Colombian food delivery service.