Mexican-based automotive marketplace Kavak, which was recently valued at $4 billion US, has officially launched in Brazil.
The company, which expanded to Argentina and is buying a company in Turkey, was already active in Brazil after a soft launch, as reported by the AIM Group.
Initially, Kavak will operate in São Paulo city with five inspection sites and one showroom.
The company plans to invest $500 million in Brazil, said founder and CEO, Carlos Garcia Ottati.
Kavak already has a headcount of 500 people in Brazil. “We have invested in over 300,000 square meters of reconditioning and operational capabilities, and after a successful test we are ready to do our biggest commitment and investment to date in Brazil,” he said.
Brazil sells over 10 million used cars per year, and Kavak expects Latin America’s largest economy to become its biggest market.
In Brazil, both WebMotors and ICarros dominate the local automotive vertical and offer strong financing capabilities. WebMotors is owned by Santander (70%) and CarSales (30%), while Itaú bank owns ICarros. OLX-Brazil also has a strong dealer base in Brazil and has more than 132 million monthly visitors, according to SimilarWeb.