Prosus N : Brazilian start-up Kovi raises $100 million in new investment round

Kovi, a start-up that is disrupting car access in Latin America, has raised approximately $100 million (around R $500 million) in a Series B round. This new investment reflects the company's continued growth: Kovi's number of customers grew by more than 70 per cent in 2020 and the company now has over 11,000 users in Brazil and Mexico. By the end of 2021, they aim to add another 20,000 cars to their fleet.

The round was co-led by Valor Capital Group and Prosus Ventures, and includes participation from Quona, GFC, Monashees, UVC Investimentos and Globo Ventures, in addition to Tinder's co-founder, Justin Mateen and Paypal's co-founder, Peter Thiel, through his family office. The new financing follows Kovi's previously raised $30 million in 2019, which included participation from Maya Capital, which continues to invest in the start-up's growth.

Kovi will use the funds raised to expand its service to new cities in Latin America and double down on existing operations in Brazil and Mexico. Additionally, resources will go towards technology development, specifically data management and the company's pay-per-mile capabilities (which is unprecedented in LATAM), as well as recruitment, with the hiring of developers, software engineers, and data scientists, among others.

Car ownership in LATAM today is extremely inaccessible for the majority of the population, as 75 per cent of Latin Americans cannot own a vehicle because of the high cost of acquisition and maintenance. Further, financing is often difficult and expensive to obtain, as credit is difficult to access. When applying for loans, 60 per cent of applications are denied by traditional banking institutions and, when approved, customers pay high interest rates that are up to 30 per cent per year.

'Our mission is to promote a revolution in this market, making car ownership affordable, less complicated and accessible to an underserved population,' says Adhemar Milani, Kovi's Co-Founder and CEO. 'We want to offer a range of options to create a platform for urban mobility and create more possibilities for our customers. We believe this investment round will help us reach these goals.'

As such, part of the funds from this round will go towards Kovi's plans to further increase access to automobiles by launching new financial services and products. The company has already begun the build-out for these anticipated products earlier this year, launching its auto insurance offering, Kovi Seguro, the first tracked insurance for app drivers.

'What sets us apart from competitors is our development of disruptive technologies. Driven by data science and analytics, we're able to offer a better user experience and competitive prices,' summarizes João Costa, Kovi's Co-founder.

The high expectations following this new round is echoed by Scott Sobel, Co-founder of Valor Capital Group: 'We see enormous growth potential in Kovi, as owning a vehicle is still a distant reality for millions of people in Latin America. It is clear to us that through disruptive solutions, owned technology and efficient management, the start-up is leading the changes in this market.'

Banafsheh Fathieh, Head of Americas Investments at Prosus Ventures said: 'Kovi is improving access to mobility and empowering thousands to rent and own automobiles in Latin America. We believe Kovi has the potential to usher in a new era of fintech solutions, catering to the unique needs of Latin Americans. We are very excited about our new partnership.'

Founded in 2019, Kovi has focused on increasing accessibility to cars for underserved clients, by combining technology, affordable prices and efficient customer service. The company was founded with the mission to make cars a reality for most of the population, not only for the 25 per cent that has access to the traditional banking system. In just three years, Kovi reached a 12,000 car fleet and a team of 700 employees.

About Kovi

Founded in 2019 by two former executives of Didi Chuxing (formerly named Didi and known as 99 in Brazil, a mobility unicorn), Adhemar Milani Neto and João Costa, Kovi is a disruptive start-up whose mission is to revolutionize access to cars. Among the fastest-growing start-ups in 2019 in the country, Kovi seeks to transform the industry by simplifying car ownership for underserved clients, facilitating driver needs and maintaining relations with rental companies, while ensuring safety for both sides. In June 2021, the company was recognized among '100 Start-ups to Watch' by magazines Pequenas Empresas, Grandes Negócios and Época Negócios, all among the most relevant outlets in Brazilian media. In the same year, Kovi was recognized by Tracxn at the 'Soonicorn Club Awards 2021', Mexico's start-up award. www.kovi.com.br

Informações à imprensa

Marília Leoni - [email protected]

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