- Rappi Inc. hires first CFO to steer towards IPO, reaches break-even.
- Major expansion in Mexico and Brazil, fueled by recent acquisitions.
- Plans enhanced competitive positioning following antitrust rulings in Brazil.
Rappi Inc., a key player in Latin America’s startup ecosystem, has appointed Tiago Azevedo as its first chief financial officer. The move is part of preparations for a potential public offering. Azevedo, with a strong financial background from MercadoLibre Inc. and The Hershey Company, will operate from São Paulo.
Since its 2015 inception, Rappi has grown significantly, marking its first break-even in late 2023. The company, with a $5.25 billion valuation as of July 2021, is accelerating its operations in Mexico and Brazil—its largest markets. This expansion includes the strategic acquisition of Box Delivery, integrating it into Rappi’s Brazil operations.
Azevedo’s arrival coincides with a renewed vigor in the U.S. IPO market, evidenced by recent tech listings. While Rappi remains non-committal on a listing timeline, its new CFO emphasizes readiness and stability, particularly in cash flow management. “Our goal is to be IPO-ready when the time is right,” Azevedo remarked, indicating a strategic rather than rushed approach to going public.
Amid tightening operational efficiencies, Rappi reported $800 million in net revenue last year and maintained its workforce at 4,000. The company has reduced marketing expenses and improved delivery algorithms, enhancing its subscription service focus. Additionally, a recent antitrust decision in Brazil has allowed Rappi to broaden its restaurant offerings, promising a stronger competitive edge in the region.
