08 October 2020

Carey Olsen advises Kavak as it becomes Mexico's first unicorn

Carey Olsen's corporate team in the Cayman Islands has advised online used vehicle platform Kavak on its third financing round which has seen the company reach a US$1.15 billion valuation and, in doing so, become Mexico's first unicorn – a privately held startup company with a valuation of US$1 billion or more.

Founded in Mexico City in 2016, Kavak’s online platform aims to make the car buying and selling experience more hassle-free by automating paperwork and financing. The startup employs more than 700 staff and currently has a pair of reconditioning centres in the State of Mexico and Guadalajara on top of its headquarters in Buenos Aires, where Kavak moved into in August following its recent merger with secondhand auto company Checkars.

Working alongside onshore counsel Gunderson Dettmer, the Carey Olsen team advising Kavak on the Cayman law aspects of its latest financing round, which totalled US$400 million, was led by corporate partner Alistair Russell, assisted by counsel Robert Coombes.

Alistair said: "We are absolutely thrilled to be part of Kavak's phenomenal story of growth and innovation. Having previously represented the first unicorns in Brazil, it is an honour to also now be working with the first one based in Mexico. This is a testament to what the team at Kavak has built and we are excited to see what the future holds.

"The transaction also further highlights the Cayman Islands as one of the premier jurisdictions for venture capital structures with a Latam focus and the rapid growth of the market in the region."