Kavak closes $300 million Series F round led by Andreessen Horowitz

Mexican car buying and selling unicorn Kavak closed a US$300 million investment round led by Andreesen Horowitz, of which $200 million was contributed by its a16z Growth fund.

“This is Andreessen Horowitz’s largest investment in a single company in Latin America and the first investment in the region from our a16z Growth fund. Kavak has built a category-defining platform with a clear mission to promote access and increase trust in a massive market,” said David George, General Partner and leader of the a16z Growth fund, in a statement.

The round also included participation from WCM Investment Management Lingotto Innovation, Foxhaven, Galdana Ventures, Stelac, and Allen & Company LLC, among others.

The Mexican platform for buying, selling, financing, and servicing pre-owned cars has been one of the Latin American startups that has attracted the most venture capital investment, as well as debt. According to the Crunchbase platform, it has raised US$2.9 billion since its founding in 2016.

Kavak became the highest-valued startup in Latin America at US$8.7 billion (above Rappi, which is valued at $5.2 billion), a title it held until March 2025 when the startup raised $127 million and its valuation fell 75%.

The company says the investment comes at a crucial time for Kavak, as it closed 2025 with nearly 120,000 transactions and approximately 40% growth compared to the previous year. In addition, it achieved its first full month of consolidated global profitability in December, driven by results in Mexico and significant profitability milestones in Chile and the Middle East, a region it entered in 2022.

Fintech momentum

Kavak has said that the new capital will be used to strengthen Kavak’s balance sheet and accelerate growth initiatives, including expanding its financing capacity and developing fintech products, strengthening its capabilities in capital markets, continuing to invest in technology, artificial intelligence, and operational excellence, as well as strengthening its marketplace ecosystem to contribute to the formalization of the used car category.

Kavak seeks to strengthen its fintech business (technology-assisted auto financing) and boasts that it has provided more than US$1 billion in financing to customers since its inception. During the fourth quarter of 2025, the company reached an annual average of $600 million in loans granted to its customers, starting 2026 with nearly 100% growth in its fintech vertical. Financing allows customers to purchase the right vehicle with terms that suit their needs, expanding access to mobility and facilitating market entry for more first-time buyers.

After several years of customer service complaints, Kavak has also invested in technology to strengthen confidence in the used car sector. The company claims to have made significant advances in the use of artificial intelligence, employing AI agents to better understand customer needs.

During 2026, the company will focus on increasing the automation of its internal processes, seeking to improve the speed, consistency, and efficiency of its operations without compromising its high quality standards.