Mexico-based used car marketplace Kavak has raised $700m in a series E round featuring telecommunications and internet group SoftBank and consumer internet company Sea, Reuters reported today.
The round, which more than doubled the company’s valuation to $8.7bn, included General Catalyst, Founders Fund, Tiger Global Management, D1 Capital Partners, Ribbit Capital and Spruce House.
Kavak operates an online platform for users to buy and sell their vehicles. Beginning in Mexico, the company has since expanded into the Brazilian and Argentinian markets over the past two years, and CEO Carlos Garcia told Reuters it has its eye on emerging markets outside Latin America going forward.
The new funding makes Kavak the second-highest valued startup in the region, behind Brazil-based digital bank Nubank. It comes just five months after Kavak secured $485m in a series D round led by D1 Capital Partners that also featured Ribbit Capital, Founders Fund and Bond, at a $4bn valuation.
SoftBank had previously made an investment of undisclosed size for the company in September 2020 that took its total funding to $400m. The corporate had also provided an undisclosed amount for Kavak in late 2019, after Mountain Nazca led a $3m round in 2016, investing together with Kaszek Ventures.
