AAA Kavak drives through $485m series D round

Kavak drives through $485m series D round

Kavak, a Mexico-based used car marketplace platform backed by internet and telecommunications group SoftBank, has raised $485m of series D funding at a $4bn valuation, TechCrunch reported yesterday.

Investment firm D1 Capital Partners led the round, which also featured venture capital firms Founders Fund, Ribbit Capital and Bond.

Founded in 2016, Kavak has built an online platform that lets users buy and sell used cars in Mexico, Argentina and Brazil. It also offers financing through subsidiary Kavak Capital and carries out reconditioning and vehicle delivery.

The company has soft-launched in Brazil and will use the new funding to conduct a full launch in the next two months as well as to develop its position in the market.

The round increased the company’s total funding to $900m and followed a round of undisclosed size co-led by SoftBank, DST Global and Greenoaks Capital in September 2020 at a $1.15bn valuation.

SoftBank had previously invested an undisclosed amount in Kavak in October 2019, after joining Mountain Nazca in a $3m round for the company three years earlier.