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Kovi’s Innovative No-Credit-Check Car Leasing Model Could Transform Canada’s Automotive Market

The automotive market is experiencing a significant transformation with the emergence of business models that democratize vehicle access. Among the companies leading this change is Kovi, a Brazilian startup that has revolutionized the car rental market in Latin America with its no-credit-check, zero-down-payment model, including the “Kovi Próprio” option that allows for vehicle purchase at the end of the contract.

What is Kovi and How Does Its Business Model Work?

Kovi is a technology company founded in 2018 by former executives of 99 (Brazil’s first tech unicorn) that offers access to vehicles through an innovative subscription model. Unlike traditional rental companies, Kovi doesn’t require credit checks or down payments to release the vehicle, making the process more accessible for rideshare drivers and people with limited access to the traditional financial system.

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Kovi’s model operates with:

  • No credit check leasing: no score analysis or financial history review
  • Zero down payment: no significant upfront payment required
  • Purchase option: customers can acquire the vehicle at the end of the contract
  • Maintenance included: essential services covered in the subscription fee
  • Monitoring technology: proprietary system tracks vehicle usage

Understanding Canada’s Current Car Leasing Market

In Canada, the vehicle leasing and financing market remains quite traditional, typically requiring:

  1. Rigorous credit verification: Most Canadian rental companies and financial institutions require credit scores above 660 for lease approval, as emphasized by Equifax’s standards.
  2. Substantial down payment: For those with poor or non-existent credit, down payments can reach 10-20% of the vehicle value.
  3. Need for a co-signer: A guarantor with good credit history is often required.
  4. High interest rates: People with negative credit history face significantly higher rates.
  5. Strict mileage limits: Canadian leases typically have annual mileage caps of around 25,000 km, which can be restrictive for many drivers.

There are a few alternatives in the Canadian market that begin to approach Kovi’s model, such as:

  • Kaicen Financial: An online broker in Ontario that works with customers who have poor or no credit history
  • Autorama: A Toronto dealership offering zero-down financing upon approval
  • Auto Credit Deals: A platform connecting to over 350 dealerships that accept different credit profiles

However, none of these options offers the complete Kovi model, which combines no credit check, zero down payment, and final purchase option.

Why Would Kovi’s Model Be Revolutionary in Canada?

Kovi’s model would address several problems faced by Canadians with difficulties accessing the automotive market:

  • Financial inclusion: Would allow newly arrived immigrants (who haven’t yet built credit history in the country) access to vehicles
  • Opportunity for rideshare drivers: Canada also has a growing shared economy market
  • Alternative for those with low credit scores: Many Canadians face difficulties with the traditional credit system
  • Flexibility for students and temporary workers: Who need vehicles for specific periods

Additionally, the Canadian leasing market has unique characteristics that Kovi’s model could address:

  • Credit doesn’t travel across borders: As noted by International AutoSource, “an Expat relocating to Canada will start with a credit score of zero,” making Kovi’s no-credit-check approach particularly valuable for newcomers.
  • Canadian winters necessitate reliable transportation: Public transit isn’t always dependable in severe weather conditions, making personal vehicle access essential in many areas.
  • Rural communities need flexible mileage options: Many Canadian leases have restrictive mileage caps that don’t work for those living outside urban centers.

Kovi’s Expansion Plans

Kovi has demonstrated global ambition since its founding. After establishing its presence in Brazil, the company expanded to Mexico with great success. In January 2025, Kovi was acquired by Moove, a Nigerian startup backed by Uber that finances vehicles for rideshare drivers.

This acquisition transformed the combined operation into one of the world’s top three fleet operators and financiers of rideshare vehicles by revenue. With the acquisition, the joint fleet grew to 36,000 vehicles and doubled its annual recurring revenue to $275 million.

Kovi’s CEO, Adhemar Milani Neto, expressed enthusiasm for international expansion, stating that “together, I believe we will become a truly global category-defining business and will leverage scale and deep expertise never seen in our market.” The company has already expressed plans to expand its operations to other Latin American countries.

What to Expect from Kovi’s Potential Canadian Launch

Although there are no official announcements yet, it’s speculated that after consolidation in Latin America, Kovi may expand its operations to North America, including Canada and the United States. The company’s business model has already proven viable in emerging markets and could be adapted for developed economies.

Entry into the Canadian market would require adaptations to the local context:

  • Regulatory compliance: Adaptation to Canadian financing and insurance laws
  • Climate adaptation: Fleet and maintenance adjustments for Canada’s severe winter conditions
  • Local partnerships: Potential alliances with dealerships and manufacturers in the country
  • Technology: Adaptation of the monitoring system to the North American context

For Canadians, Kovi’s arrival could mean:

  • Easier access for newcomers: A solution for the 400,000+ new permanent residents Canada welcomes annually who struggle with the “no credit history” barrier
  • More flexible lease terms: Options that don’t penalize drivers for exceeding mileage limits
  • Financial inclusion: Opportunities for the 53% of Canadians who live paycheck to paycheck according to recent studies
  • Support for the gig economy: Enabling more Canadians to participate in rideshare and delivery services

Conclusion

Kovi’s innovative model, which eliminates traditional barriers such as credit checks and down payments, represents a global trend toward democratizing vehicle access. With its recent acquisition by Moove and stated plans for international expansion, speculation suggests that Kovi’s expansion beyond Brazil and Mexico may soon extend throughout Latin America and potentially reach markets like the United States and Canada.

If realized, the arrival of this model in Canada could significantly transform the country’s mobility market, offering new alternatives for thousands of Canadians who currently find it difficult to access vehicles through the traditional system.


Stay tuned for updates: speculation suggests that after its expansion in Brazil and Mexico, Kovi may extend its reach throughout Latin America and soon enter the United States and Canadian markets, bringing its revolutionary no-credit-check vehicle access model to the North American market.