The company already operates in three Latin American countries, but will now increase its presence to a total of seven markets in the world.
The Mexican used car company Kavak, considered the Latin American ‘startup’ better valued, has decided to expand to four other countries, including Turkey, its first market outside Latin America, with a total investment of 180 million dollars, announced its executive director, Carlos García, in statements to Reuters.
Kavak will open offices in Colombia, Chile and Peru with a planned investment of 120 million dollars. It will allocate another 60 million to settle in the Turkish city of Istanbul. “Turkey is a $120 billion market, so it’s a great opportunity,” Garcia said.
In that country ” face similar problems that we face in Mexico and Brazil,” he added, referring to fraud in the sale of used cars and difficult access to financing. The SoftBank-backed startup is valued at $8.7 billion and has experienced rapid growth in Mexico, which represents 60% of its operations.
Kavak already operates in Argentina and Brazil. However, its expansion in the Brazilian market has not been without obstacles. In June, the company cut about 150 jobs in Sao Paulo and Rio de Janeiro, less than a year after the start of its operations in the South American giant. According to García, the cut was due to the results of an early investment before growth and the need to adjust to changing market conditions.
However, the executive assured that currently mass layoffs are not foreseen.