Kavak closes US$ 300M Series F to accelerate AI, Financing, and Regional Expansion from a16z

Kavak is entering a new phase of expansion after closing a US$300 million funding round that underscores investor confidence in its operational turnaround and long-term growth strategy across Latin America and other emerging markets.

The round was led by Andreessen Horowitz through its a16z Growth fund, which contributed US$ 200 million. It was co-led by WCM Investment Management, with additional backing from Lingotto Innovation, Foxhaven, Galdana Ventures, Stelac and Allen & Company LLC, among others.

At the time of publication, the transaction remains subject to customary closing conditions and regulatory approvals.

From growth to profitability

Rather than focusing solely on expansion, Kavak spent the past two years refining its operational model. The results became visible in 2025, when the company recorded nearly 120,000 transactions, around 40% more than the previous year, and reached its first full month of consolidated global profitability in December.

Performance in Mexico was a key driver, while Chile and the Middle East delivered important profitability milestones. These achievements follow structural adjustments aimed at improving efficiency while maintaining geographic growth.

In an internal message, founder and CEO Carlos García Ottati framed the new capital as fuel for a long-term mission: expanding access to car ownership, reducing fraud and informality, and strengthening consumer trust in the used vehicle market.

“Kavak was built to create solutions for everyone,” he said, pointing to the company’s role in providing liquidity to sellers, access to buyers, and accountability when issues arise.

According to García Ottati, the new funding will accelerate product development and technology enhancements designed to simplify and secure the buying and selling journey.

Financing as a growth lever

A central pillar of Kavak’s model is its integrated fintech operation. Since launch, the company has originated more than US$1 billion in financing. In the fourth quarter of 2025, it reached an annualized pace of US$600 million in loans, entering 2026 with close to 100% growth in its fintech vertical.

By offering tailored credit solutions, Kavak seeks to unlock vehicle ownership for customers who may not have traditional financing options, including first-time buyers. The company positions financing not only as a revenue stream, but as a tool to broaden participation in the formal automotive market.

AI and automation to improve efficiency

Technology continues to be a defining element of Kavak’s strategy. The company has incorporated artificial intelligence agents to better interpret customer needs and optimize internal workflows. For 2026, management plans to increase automation across operations, aiming to boost speed and consistency without sacrificing quality standards.

These efforts are tied to a broader objective: formalizing a segment historically marked by high levels of informality in Latin America.

Strengthening trust in a fragmented market

The used car market across the region has long been associated with fraud risks and inconsistent quality standards. Kavak addresses this through standardized inspection, reconditioning, logistics, and financing processes designed to reduce uncertainty for buyers and sellers.

Company metrics illustrate this focus on quality control. Roughly 5% of vehicles sold require post-sale service under coverage programs, and about 1% of customers opt to return or exchange their vehicle within the designated window. These indicators, according to the company, reflect improved operational rigor and customer response mechanisms.

Beyond direct-to-consumer sales, Kavak is also expanding its marketplace infrastructure. More than 5,000 commercial partners, including dealerships, agencies, independent lots, fleet operators, banks, and insurers, now use its technology platform to serve end customers and contribute to reducing informality in the broader ecosystem.

A milestone investment for the region

For Andreessen Horowitz, the transaction represents its largest single-company investment in Latin America and its first in the region through a16z Growth.

“This is the largest investment we have made in a single company in Latin America,” said David George, General Partner and head of the fund.

He described Kavak as a category-defining platform operating in a massive market with a clear mission to expand access and increase trust.

Capital allocation priorities

Kavak plans to use the new funds to reinforce its balance sheet and accelerate strategic initiatives. Priorities include expanding financing capacity, strengthening capital markets capabilities, advancing fintech product development, investing further in artificial intelligence, and scaling operational excellence.

The company will also continue building its marketplace ecosystem as part of its broader effort to formalize the used vehicle sector.