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Oman’s Carzaty merges with Mexican car platform Kavak

12 Oct 2022 By

Muscat – Mexican online used-car dealership Kavak – Latin America’s most valuable startup – has merged with Oman-based online pre-owned cars platform Carzaty.

With the merger, Kavak has expanded to Oman and the United Arab Emirates, boosting its presence in emerging-market countries, the firm’s global CEO Carlos Garcia Ottati said.

The company will soon start operations in Saudi Arabia as part of its expansion plan in the GCC.

Kavak plans to invest US$130mn over the next two years to establish the largest used car operation in the Gulf region with more than 1,000 employees, and the largest vehicle reconditioning centres in the GCC.

Founded in 2016 by Ottati, Kavak is the market leading tech and data driven platform for used cars at a current valuation of US$8.7bn, a press release said.

Following the launch of its operations in Turkey in July 2022 and now the GCC, Kavak has expanded into a global player with presence in ten countries.

Carzaty was founded in Oman at the end of 2018 by ex-McKinsey consultant Hassan Jaffar al Lawati and Harvard Business School alumnus Marwan Chaar.

Commenting on Carzaty’s early journey and the future with Kavak, co-CEO of Kavak GCC, Lawati said, “When we launched Carzaty in Oman we were problem solving for the immediate market needs – to create a data driven business that could best address customer demands with a strong focus on improving the customer journey. With an investment from the Omani government we were equipped to build the foundations of our business locally and expand into the UAE which acted as our launchpad to scale. As we start this new chapter with our colleagues at Kavak, we are excited to bring our local market knowledge to their global playbook as we double down on the UAE and Oman and expand further into KSA and the rest of the GCC.”

Commenting on the market opportunity and merger, Chaar, co-CEO of Kavak GCC, said, “Quality standards have become the highest point of discordance in the global used-car market. Kavak’s model has disrupted the industry to provide consistency and reliability, so that customers can feel trust and reassurance in the car they are buying. Kavak also offers customers up to two years in warranties, ensuring their peace of mind.”

Ottati said the GCC region represents a massive untapped opportunity for Kavak. “With our commitment to invest US$130mn into the GCC over the next two years, we are excited to bring customers a new level of customer experience as well as a wealth of employment opportunities to the region.”

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