Used vehicles. Mexican online company Kavak will operate in Argentina
Although sales of Kavak in Mexico fell by 28% in April compared to the previous year, they returned to pre-pandemic levels in June and began to increase further in August.
As part of the expansion of its first market outside Mexico, Kavak, an online platform for buying and selling used cars , will invest $10 million in Argentina.
Checkars, based in Buenos Aires, founded in 2018, has recorded about 1,500 transactions and reported last year a turnover of eight million dollars, he said Kavak is a statement.
In addition to ensuring a smooth merger, Garcia’s next challenge is to increase inventory to gain a larger share of the $60 billion used car market in Mexico and about $20 billion in Argentina, according to the director.
Also to meet the growing demand from buyers with limited budgets affected by the pandemic, a trend already documented in the United States.
“Now, with the pandemic, the economy is more important than ever for customers,” said Garcia.
Its plan is to offer 20,000 used cars in Mexico over the next 12 months, compared to the 2,000 currently available.
Some buyers live in households that already have a car but opt for a second one as an alternative to subways and buses, where passengers are more vulnerable to contracting the virus, he argued.
Garcia declined to detail the number of funds he has raised Kavak, but said the Japanese investor SoftBank Group, which aims to deploy up to $5 billion in Latin America, has brought a global perspective to the startup, which has been operating for four years.