SoftBank confirms upcoming investment for Mexican used car platform, Kavak

Contxto – Sometimes speculations turn into reality, made evident by SoftBank’s recent partnership with Kavak, Mexico’s leading used car platform. What began as a rumor in August has resulted in the recent announcement that Kavak will be joining SoftBank’s widening Latin American portfolio.

“We are proud to join with and invest in Kavak Mexico,” said Marcelo Claure, the chief operating officer for SoftBank Group Corp’s Latin America investments. “The company is truly transforming the use of mobile devices in the automotive market in Mexico.”

Whether you’re buying or selling a vehicle, Kavak’s platform may have a resolution for you. Purchasing one out of three cars that it appraises, the startup offers up to 15 months of warranty as well as competitive rates. It even offers a seven day (or 300 kilometers) trial to ensure that customers are happy with their purchase. 

Timeline of Kavak and SoftBank

Back in August, Reuters reported that SoftBank was in advanced talks with Kavak regarding potential investments. At the time, the Japanese conglomerate was also appraising the Mexican fintech, Konfio. 

Since the beginning of the year when SoftBank revealed its US$5 billion fund for Latin American startups, it has been on a roll ever since. So far, this is SoftBank’s second known investment in Mexico. This past May, the Mexican fintech Clip raised about US$20 million to scale its payment services. 

Focus on mobility 

Over time, mobility has become one of the bank’s primary focuses. Kavak’s Brazilian counterpart, Volanty, also raised over US$17 million from the Japanese megabank in August.  

Other mobility startups that SoftBank has recently supported include Buser from Brazil. Even outside of Latin America, SoftBank has also supported Chehaoduo Group with US$1.5 billion. This company oversees China’s leading second-hand car platform. 

Outside of mobility, fintechs have also earned substantial backing from SoftBank, such as Creditas from Brazil. So far, Brazil has received the most capital from the firm with investments going to Brazilian startups like MadeiraMadeira, Gympass, in addition to QuintoAndar. 

Main image by Katka Pavlickova at Unsplash