Foreign investment comes to Turkey for second hand car market
Kavak, one of the largest unicorns of Latin America founded by Ottati, a former Amazon executive, has made an ambitious entry into the Turkish used car market by purchasing Garajsepeti. The group, which entered the market with an investment of half a billion, aims to lead the Middle East to Africa with its company called Carvac, in Turkey.
Access to new cars in Turkey is becoming increasingly difficult due to high taxes and inflationary pressure, while demand continues to shift to the second hand. The fact that the crisis that began with the pandemic in chip supply has created a problem of availability in zero-mileage vehicles is also growing the second hand sector. However, due to the speculative price environment and consumer confidence problems, the need for corporate firms in the sector is increasing. This situation has increased the appetite of domestic and foreign companies to invest in the second-hand sector of Turkey.
KAVAK, A LATIN AMERICAN AUTOMOTIVE COMPANY AND NEW PLAYER IN USED CAR MARKET OF TURKEY
KAVAK, which was founded in Mexico in 2016 and recently received investments of $ 1.6 billion from companies such as General Catalyst, Tiger, Spruce House, SEA, Founders Fund, Ribbit and SoftBank, entered Argentina in 2020 and Brazil in 2021. The next stop of the company which invests in emerging markets, was Turkey.
KAVAK which grows by more than 100 percent every year plans to invest in more than 5 more countries. The value of KAVAK has reached 8.7 billion dollars.
