Kavak, a Mexico-based automobile startup focusing on Latin America has raised $810 million in a new financing deal with HSBC, Goldman Sachs, and Santander, to improve its used car selling offering.
- The financing secured will be used to improve the startup's customer experience and create new services that will help citizens solve mobility problems, Moises Flores, Kavak's CFO says.
- HSBC provides the bulk of the financing, with $675 million from the bank to purchase part of Kavak's current and future loan portfolio in Mexico. Goldman Sachs and Santander are providing $135 million, secured by Kavak's assets, including automobiles and warehouses.
- The auto company uses its data stack, technology, and innovation to formalize the pre-owned cars industry, and offers a wide catalogue of guaranteed and certified cars. It looks on to negotiate more debt financing with banks, which may push up its raise to $1.2 billion by the year-end.
- Kavak provides e-commerce and app services to complement its physical stores globally and offers post-sale servicing and a financial division.
- The resources raised have been under negotiations for the past 18 months and the automobile platform will become profitable in the next six months, the CFO claims.