The platform to buy and sell used cars, Kavak seeks to strengthen the business. This Tuesday it announced the signing of three agreements, for 810 million dollars , with HSBC, Goldman Sachs and Santander, with the intention of supporting its growth.
The Mexican unicorn assured that the announcement supports the financial strength and business model of the company, “the private startup with the highest valuation in Latin America.”
HSBC provided financing of $675 million. For this reason, Kavak, through a framework contract for the sale of portfolio, will transfer the collection rights regarding the financing that it grants to its clients for the purchase of pre-owned vehicles.
“The collaboration between HSBC and Kavak will allow both companies to exchange best practices in digital innovation, risk management and global standards, and due to the transformation that this represents for the industry, the Mexican unicorn is laying the foundations for the market of pre-owned cars of the future”, said Enrique Margain, Executive Director of Mortgage and Automotive Credit of HSBC Mexico.
The Mexican company received a credit line for 100 million dollars from Goldman Sachs , and another for 35 million dollars from Santander , capital that it will allocate to the development of its business model and inventory, with the aim of continuing to penetrate the Latin American market.
Kavak entered from the beginning in some of the main venture capital funds worldwide , such as Softbank, General Atlantic and Greenoaks, which total 1,600 million dollars in five rounds of financing, so, with the recent announcement, the The startup’s value amounts to more than $8.7 billion, he says.
Kavak began operations in Mexico five years ago. Since then it has expanded to Argentina, Brazil, Chile, Colombia and Peru, and outside the continent in Turkey, territories in which “it will continue to develop its model, to adapt it to the needs of citizens”