Kavak will cease operations in Peru and Colombia in January 2024. The company will continue serving existing customers in Bogota and Lima until it finishes all its current deals.
Kavak made this choice to focus on more profitable and fast-growing markets. They currently operate in eight Latin American countries and plan to stay in those markets.
In May, Kavak invested $2.1M in a car plant in Colombia, capable of producing 2,500 cars each month. In Peru, they invested $40M and planned to triple its sales by the end of 2023.
Kavak’s platform reached an estimated valuation of around $8.7M in May this year, with backing from Japan’s SoftBank.
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