Kavak (company)
Mexican online used car marketplace
From Wikipedia, the free encyclopedia
Kavak is a Mexican company that operates a platform for buying, selling, financing, and managing cars and commercial vehicles, for both individuals and businesses.[1][2]
Company type | Private |
|---|---|
| Industry | E-commerce, Financial technology, Car sales |
| Founded | 2016 |
| Founder | Carlos García Ottati |
| Headquarters | , |
Area served | Mexico, Argentina, Brazil, Chile, United Arab Emirates |
Key people | Carlos García Ottati (CEO) |
| Products | Purchase and sale of used vehicles, automotive financing, maintenance services, personal credit |
| Website | www |
It was founded in 2016[3][4][5] and is headquartered in Mexico City. Its founder and CEO is Carlos García Ottati.[6][7][8][9][10]
History
Initial fundraising began in 2016[10] and was conducted through the Mountain Nazca fund. This investment vehicle provided the support needed to hold a first round for $3 million, at that time the biggest seed-stage investment ever completed.[6] The team raised nearly $400 million in three funding rounds between 2016 and 2020, with Kaszek Venture, Mountain Nazca, and SoftBank taking point. Those investments pushed Kavak to a $1 billion valuation by the end of 2020, making it Mexico's first unicorn.[11][12]
Kavak came to Argentina in 2020 after it merged with local startup Checkars.[13][14]
The company expanded to Brazil at the start of 2021.[15] It achieved a unicorn ranking as the second-most valuable business in Latin America after raising $700 million in a Series E round that valued the company at $8.7 billion.[16][8][17][18]
In July 2022, the company announced plans to enter Chile, Colombia, Peru, and Turkey. Later in the year, it announced its plans to enter the United Arab Emirates as well.[19][20]
Colombia and Peru subsequently halted operations indefinitely to focus on their core markets.[21][22]
Kavak possessed only a 1% share of the total 5 million used car transactions made every year in Mexico by the year.[23] In November 2025, Kavak Crédito was launched, which marked the company's beginning in the financial service industry.[24]
Services
Kavak offers used cars, car maintenance, and personal credit intermediary services.[8] The company continued to grow its financial segment, initially from Kavak Capital, and then from two new brands: Kuna and Kavak Crédito.[25]
It uses data and AI to create an algorithm that collects public auto-industry information and internal data to calculate the prices that will be fair for car buyers and sellers.[17] Through thousands of runs, the algorithm learned to project market trends and assess users' ability to pay, which allowed the company to provide personalized financing options and offers of vehicles.[26][2]
In the State of Mexico, Kavak has a vehicle reconditioning facility, which can recondition over 3,500 vehicles per month.[27] It involves technical check-ups, repair, and quality certification to ensure that the vehicles are up to the standards.[4]
Investors and alliances
Kavak has received investments from some major organizations, such as Sea,[28] Softbank,[29], Founders Fund, Tiger Global, General Catalyst, Spruce House, Ribbit Capital, and the D1 hedge fund.[30][28]
Among the individual investors, the Argentine athlete Manu Ginóbili stands out.[31]
Kavak has entered into various business deals, such as the partnership with the Mexican Football Federation and the Argentine Football Association (AFA), [32] as well as the partnership with Uber to provide self-financing services.[33] In February 2022, Kavak took over the sponsorship of the CONCACAF Champions Cup (CCC).[34] In December 2025, Kavak was announced as an official commercial partner of the National Football League (NFL).[35]
Social impact
The organization has put in place a program known as "Talentos únicos," an initiative to recruit and train older people in conjunction with the National Institute for Older Persons (INAPAM).[36]
Kavak has established three committees focused on the rights of its employees: one for women, one for racial minorities, and one for the LGBTQ community.[37]
Recognition
- In 2018, Kavak was named Entrepreneur of the Year by Expansión magazine.[7]
- In 2023, Kavak advanced the most out of all the listed companies in Expansión magazine’s "The 500 Most Important Companies of Mexico" list, jumping 93 places to 322 from 415.[38]
- Kavak has been recognized by the Federal Consumer Protection Agency (PROFECO) for its conciliation processes.[39][40][41]