Auto Fintech Kavak Secures $300M
Mexican auto fintech company Kavak has raised $300 million in a Series F funding round. The capital is intended to expand the company's car financing and trust infrastructure across Latin America. The funding highlights continued investor confidence in fintech platforms that address real-world asset financing.
- The funding round was led by Andreessen Horowitz (a16z), which contributed $200 million, marking its largest single-company investment in Latin America and the first from its regional Growth fund. - Kavak's valuation peaked at $8.7 billion in 2021 before dropping to $2.2 billion in a March 2025 funding round; the company confirmed the valuation for this Series F round is higher than the 2025 figure. - The company was founded in 2016 by Carlos García Ottati, Loreanne García, and Roger Laughlin Carvallo to formalize the fragmented used-car market where private sales are often prone to fraud. - Kavak's fintech division has financed over $1 billion in loans since its inception and entered 2026 with its financing arm growing at nearly 100%. - The company reached a significant operational milestone in December 2025, recording its first full month of consolidated global profitability. - In 2025, Kavak processed nearly 120,000 vehicle transactions, an increase of approximately 40% from the previous year. - After a period of rapid international expansion, Kavak has recently focused its efforts on core markets like Mexico, which now generates 60% of its business, after halting operations in Colombia and Peru. - The Latin American used car market is estimated to be worth over $67 billion, but access to financing is a major challenge, with only 5% of the 6 million used car transactions in Mexico receiving adequate financing.
