Brazil’s second-hand car market is booming and Volanty’s latest funding is proof of that.

On Thursday, Volanty, a digital used car portal in Brazil stated, it has received a funding of $17.6 million (70 million reais) from a consortium of venture capital funds led by Japan’s SoftBank and Kaszek of Argentina.

The development comes in the wake of Brazil’s second-hand car market registering a staggering growth with a turnover of 400 billion reais a year.

As a result, investments made by venture capital firms have quadrupled in Latin America over the last two years. This investment trajectory is expected to continue on the back of Japan’s SoftBank Group which launched a $5 billion Latin America fund earlier this year in March.

Set up in 2017, Volanty is an online platform which brings together buyers and sellers of used cars. Unlike pure digital portals, Volanty also has physical dealerships where vehicles are appraised, priced, photographed, documented and traded.

Softbank’s investments in Volanty aims to tap Brazil’s rapidly growing used car market which saw more than 14 million used cars being traded in 2018, said federation Fenauto.

Volanty plans on using the fresh proceeds to speed up its expansion by opening new appraisal centers in Sao Paulo as well as hiring more staff, including industry executives.

In 2018, Volanty had received 19 million reais from Monashees and Canary, which had already invested 2.5 million in 2017.

“We will have hundreds of centers around the country in the coming years,” said Mauricio Feldman, Volanty’s co-founder and CEO.