Contxto – From seed round to Series A, Kovi continues to grow. While the Brazilian startup received US$10.5 million worth of seed funding in May, the car rental solution recently announced a US$30 million Series A investment round led by Global Founders Capital.
Joining this firm for the joy ride are once again Maya Capital, Monashees, Tinder’s Justin Mateen, Broadhaven Ventures, ONEVC, Y Combinator, Accel Partners’ Kevin Efrusy, along with newcomer, Quona Capital.
What does this long list of names actually amount to? To say the least, this young startup may be less than two years old but it has gathered a total of US$40.5 million in funding so far.
With these fresh funds, Kovi plans to hire more staff and expand its fleet beyond 3,000 active vehicles. The startup is also looking to expand into other locations and develop its tech to enhance the driver’s experience. Strengthening fleet security will also be another priority.
As we’ve previously explored, purchasing a car to participate in ride-hailing services is still an obstacle for many. This is the reason why Kovi’s solution is so innovative and has been increasing significantly over time. Simply consider the startup’s monthly 68 percent growth rate, as reported by Kovi’s CEO, Adhemar Milani Neto.
In the end, this progress has allowed Kovi’s business model to help aspiring drivers in São Paulo and Porto Alegre in Brazil. Within its native market, there are plenty of people aspiring to work for ride-share apps. After all, Brazil happens to be Uber’s largest market after the United States.
The offering is also appealing to ride-share apps depending on drivers.
“There’s a huge market on the demand side, with companies needing drivers,” said Fabricio Pettena from Global Founders Capital in São Paulo. “And on the supply side, there’s literally a waiting line of people wanting cars to drive. Kovi is able to provide that car supply.”