Kavak Valuation Slashed by $6.5 Billion After $127 Million Raise

The valuation for Latin America’s most valuable startup was cut, by $6.5 billion, to $2.2 billion in its most recent funding round.

Mexico-based online used car dealer Kavak raised $127 million in an equity round that closed in March, which helped the firm secure two $200 million debt facilities, from Goldman Sachs Group Inc and HSBC Holdings Plc each, the company’s founder Carlos Garcia Ottati said in an interview with Bloomberg News.

SoftBank Group Corp and General Atlantic co-led the equity raise, he added.

“It was a small round and exclusive for internal investors, so we were not really sensitive ...