HSBC awarded a financing of 675 million dollars. For this reason, Kavak, through a framework contract for the sale of portfolio, will transfer the collection rights regarding the financing that it grants to its clients for the purchase of pre-owned vehicles.
“The collaboration between HSBC and Kavak will allow both companies to exchange best practices in digital innovation, risk management and global standards, and due to the transformation that this represents for the industry, the Mexican unicorn is laying the foundations for the market of pre-owned cars of the future”, said Enrique Margain, Executive Director of Mortgage and Automotive Credit of HSBC Mexico.
The Mexican company received a Goldman Sachs $100 million line of creditand another for 35 million dollars from Santandercapital that will be allocated to the development of its business model and inventory, with the aim of continuing to penetrate the Latin American market.
Kavak ventured from the beginning in some of the world’s leading venture capital fundssuch as Softbank, General Atlantic and Greenoaks, which add up to 1,600 million dollars in five rounds of financing, so that, with the recent announcement, the value of the startup amounts to more than $8.7 billion, points out.
Kavak began operations in Mexico five years ago. Since then it has expanded to Argentina, Brazil, Chile, Colombia and Peru, and outside the continent in Turkey, territories in which “it will continue to develop its model, to adapt it to the needs of citizens”