Kavak, a Mexico-based online marketplace for pre-owned vehicles, has raised $300 million in a Series F funding round led by Andreessen Horowitz. The company operates a full-stack platform that owns its inventory, conducts 360-point inspections, offers 7-day/300km trial periods, 3-month warranties, physical experience centers, and financing through Kavak Cr\u00e9dito. This capital injection follows Kavak's first profitable month in December 2025 and will fuel international expansion and product enhancements.
Profitability Milestone Fuels Expansion
The timing aligns with Kavak achieving profitability, a rarity in capital-intensive auto tech. Valued at $8.7 billion, Mexico's first unicorn-turned-pegasus now eyes deeper penetration in emerging markets. Its model addresses a sector stagnant for 50 years by eliminating middlemen and building trust through transparency.
Opaque Dealers Exclude Unbanked Buyers
In markets like Mexico and Brazil, used car transactions suffer from fragmented dealerships, information asymmetry, and high costs. Unbanked consumers—millions strong—face barriers to financing, relying on informal lenders with exorbitant rates. Traditional solutions fail to provide certification, trials, or seamless ownership experiences, perpetuating distrust and inefficiency.
Full-Stack Ownership Drives Differentiation
Kavak owns its entire inventory, leveraging AI for real-time pricing and rigorous inspections to certify vehicles. Physical hubs stocking 100-900 cars offer hands-on experiences, while Kavak Cr\u00e9dito extends loans using cars as collateral, targeting first-time and underserved buyers. This integrated approach has powered 40% transaction growth and served over 300,000 customers in Mexico.
Unlike broker-based platforms, Kavak's control over supply chain cuts costs and enables guarantees like 7-day returns. Thousands of cars move monthly across eight countries, supported by 4,000 employees.
a16z Validates Profitable Scale-Up
Andreessen Horowitz's participation signals strong belief in Kavak's capital-efficient path to profitability. The $300 million boosts a company already operationally mature, shifting focus from survival to dominance. This round elevates Kavak's $8.7 billion valuation, highlighting investor appetite for proven models in high-growth regions.
Emerging Markets Auto Retail Transforms
Kavak spans Mexico, Brazil, Argentina, Chile, Turkey, UAE, Oman, and Saudi Arabia—eight countries total. Recent traction includes NFL sponsorship in Mexico and fintech partnerships like Creditaria to broaden credit access. With hubs, inclusive hiring for adults over 50, and consistent monthly sales, Kavak redefines used car e-commerce amid regional digital shifts.