A logo of used autos platform Kavak is pictured on a car in Mexico City, Mexico, August 25, 2020. Picture taken August 25, 2020. REUTERS/Edgard Garrido
Kavak kicks off the week with a strategic series of news. The first is that they completed the acquisition of the Turkish startup Garaj Sepeti that buys and sells used cars. With this, they seek to have a smooth entry into the Asian and European markets.
Details of the deal have not been made public, but Turkish competition regulator Rekabet Kurumu approved the acquisition last September. At the time of acquisition, Garaj Sepeti was valued at US$40 million.
September was a good month for the Mexican unicorn, as they also announced a US$700 million Series E investment round. The General Catalyst fund led it, and other investors such as Tiger Global, Founders Fund and SoftBank joined.
In total, Kavak has raised US$1.5 billion since their creation in 2016. Its rapid growth meets its expansion plans, first regionally and later outside the continent.
Their first step towards going international was in 2020, when they entered the Argentinian market by merging with Checkars and investing US$10 million. The second was last January, when they announced their arrival in Brazil with an investment of US$500 million.
Startups Enter The Sponsorship Game
The second announcement is that Kavak is one of the main sponsors of the Mexican National Soccer Team heading to the 2022 World Cup.
This commercial association with the Mexican Soccer Federation is accompanied by “a vision to support the growth of the country and support the athletes who inspire millions of Mexicans,” according to a statement.
This sponsorship coincides with others made by Latin American unicorns. Nubank plans to sponsor the FIFA World Cup, Rappi the McLaren F1 team, and Bitso the Club Tigres de Monterrey.
Kavak has previously been associated with national sports figures. Formula 1 driver Sergio ‘Checo’ Pérez, and Mexican National Team captain Guillermo Ochoa, joined as shareholders of the company in 2021.
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