Kavak raises $127M in down round, drops valuation to $2.2B

Mexican used car platform Kavak raised $127M in equity funding at a $2.2B valuation, down from $8.7B in 2021. SoftBank and General Atlantic co-led the round, which closed in March 2025.

Kavak also secured $400M in debt from Goldman Sachs and HSBC to expand lending through Kuna Capital, its financing arm.

“My opinion on ‘up rounds’ and ‘down rounds’ is simple: entrepreneurs should focus on developing the long-term potential of their company and taking care of customers, employees, and shareholders along the way,” said Carlos García Ottati, CEO and co-founder of Kavak. 

Kavak runs an integrated platform for buying, selling, and financing used cars across Latin America. 

Kavak will use the capital to grow its lending operation, improve core operations in Mexico, and prepare for a potential IPO within three to five years.

Kavak reports that inventory is rotating 3.5x faster than the previous year, with monthly volume up 60%, and Kuna has issued nearly $1B in loans over the past four years. 

“We’ve reached profitability in some markets within a few months. We haven’t achieved full-year profitability yet, but we’re on track to reach it across all markets in 2025, hopefully by the end of the year,” added García Ottati. 

Founded in 2016, Kavak reduced its headcount by half to 4,300 employees, shut down operations in Colombia and Peru in 2023, and now generates 60% of its business in Mexico. 

Read more on Bloomberg Línea.