SAO PAULO (Reuters) – the brazilian ” digital car portal Volanty has received an infusion of over 70 million reais ($17.6 million) of venture capital funds led by japan’s SoftBank, and Kaszek, Argentina.
FILE PHOTO: The logo of SoftBank Group, Corp, is seen at the head office of the company in Tokyo, japan, June 30, 2016. (REUTERS photo/Toru Hanai/File Photo
The funds, which were also accompanied by Monashees Capital+, and Fi, are betting on a rapidly growing market for second-hand cars, which has a turnover of about 400 billion reais per year.
Venture capital investment is four-fold in Latin America in the past two years, and is expected to continue to rise this year, mainly due to the japanese SoftBank Group (9984.(T), which is the start of the $5 billion the Latin America fund in March, the region’s largest venture capital and project implementation.
Volanty, it was established in 2017 and brings together buyers and sellers of new and used vehicles online. However, in contrast to the other portals, but it also has a physical-dealers, where the vehicles are to be appraised, priced, photographed, documented, and distributed.
It’s a digital model for the sale of the car has been used very successfully in China, Europe and the United States.
Softbank earlier this year, an investment of $1.5 billion in a Chinese used car trading platform Guazi.com that is, it is valued at around $10 billion. A similar start-ups in different regions of the Shift, and Carvana, in the United States of america, Auto1, in Europe, and to Kavak, in Mexico.
The investment in the Volanty focus on the rapid growth expected in Brazil, where there are more than 14 million used vehicles were sold by 2018, according to the automobile dealers federation of Fenauto.
With the new funding, Volanty plan and said that it was going to be the speed of the expansion, with the launch of a new assessment centres in Sao Paulo and the hiring of new employees, such as executives from the industry.
Last year, the startup received funding of 19 million reais from the Monashees, and the little Canary bird, which has already invested eur 2.5 million into the company in 2017.
“We have got hundreds of centers across the country in the years to come,” Volanty is a co-founder and CEO, Mauricio Feldman told Reuters.
Reporting by Aluisio Alves; Editing by Lisa Shumaker