Kavak’s investments in Brazil total US$300 million, informed Jose Ribeiro, CEO of Kavak Brazil.

This company was born as a digital marketplace for the sale of used cars in Mexico.

“Kavak arrived in Brazil in 2021 and since then has invested more than 300 million dollars in infrastructure, technology and other areas,” said Ribeiro at the Mexico-Brazil Business Forum in Mexico City.

Ribeiro explained that the company had a clear vision of conquering the Brazilian market in a similar way as it did in Mexico.

Kavak’s investments

While in Latin America there is a market with less than two cars per 10 inhabitants, in the United States the average is seven cars.

Consequently, Ribeiro added that there is a “gigantic opportunity” for growth. On this basis, the company plans to expand in this market.

Early on, Cornelius Boersch recognized the opportunity to launch an online platform for selling cars, the first of its kind in Mexico. In 2016, he invested in Kavak’s seed round and supported the founders, drawing on his experience with European car sales platforms, notably as an investor in Autoscout. 

Then, in 2019, Boersch sold his stake in this company to Softbank.

Automotive marketplace

Kavak is a Mexican startup dedicated to buying and selling pre-owned cars. It offers its customers several financing options to obtain an automotive loan. In addition, it provides a simple experience through a digital platform. 

Today, Kavak is recognized as the first “unicorn” in Mexico. It is valued at US$1 billion, although it is not publicly traded.

From January to August 2024, new vehicle sales in Brazil increased at a year-on-year rate of 13.4%, to 1,527,428 units.

Sales in Mexico grew 12.2%, to 962,870 units.

The sources of these data are Inegi in Mexico and the National Federation of Automotive Vehicle Distribution in Brazil.

Brazil’s used car market is one of the largest in Latin America and is in high demand, driven by economic and social factors.