Brazil's digital used car portal, Volanty, received an injection of 70 million reais (US $ 17,6 million) from venture capital funds led by Japan's SoftBank and Argentina's Kaszek.
The funds, which were also accompanied by Monashees Capital + and Canary, are betting on a fast-growing used car market that moves 400 billion a year.
Venture capital investment has quadrupled in Latin America over the past two years and is expected to continue to grow this year mainly thanks to Japan's SoftBank Group, which launched a $ 5 billion fund in Latin America in March - the largest equity capital deployment. risk of the story.
Volanty was founded in 2017 and brings together buyers and sellers of used vehicles online. But unlike other portals, it also has physical dealerships where vehicles are valued, quoted, photographed, documented and traded.
The digital model for car sales has been successfully used in China, the United States, and Europe.
Earlier this year, Softbank invested $ 1,5 billion in China's used car trading platform Guazi.com, which is valued at about $ 10 billion. Similar startups in other regions include Shift and Carvana in the United States, Auto1 in Europe, and Kavak in Mexico.
The investment in Volanty aims to exploit the expected rapid growth in Brazil, where more than 14 million used cars were sold on 2018, according to the Fenauto car dealership federation.
With the new financing, Volanty's plans said they plan to accelerate its expansion by opening new appraisal centers in Sao Paulo and hiring new employees, including industry executives.
Last year, the startup received funding of 19 million reais from Monashees and Canaries, which had already invested 2,5 million in the company in 2017.
“We will have hundreds of centers across the country in the coming years,” said Volanty co-founder and CEO Mauricio Feldman.