Kavak will be expanding its business into four new markets: Colombia, Chile, Peru and Turkey. The latter will be its first office in the Europe, Middle East and Africa (EMEA) region once it launches in Istanbul. The global expansion will see the company invest $120 million in the new South American ventures while earmarking $60 million for its expansion to Europe. Since its launch in 2016, Kavak has become one of Latin America’s most valuable and fastest-growing startups. Currently, the business is valued at $8.7 billion after becoming the first Mexican startup to be valued at over $1 billion in 2020. The company’s investors include Sea, SoftBank, Peter Thiel’s Founders Fund, Tiger Global and others.
Rapid growth hasn’t come without its hurdles. Kavak cut an estimated 150 jobs from its Sao Paulo and Rio de Janeiro operations last month, less than a year after expanding to Brazil. Now that it has an international presence spanning both sides of the Atlantic, Kavak may find Istanbul proves to be a strategic foothold. As a city that straddles Europe and the Middle East, it could act as a launch pad for further expansion in the EMEA region when the time comes.