Delivery Hero announced that they have sold US$150 million of their stake in Rappi. This represents most of the capital they had invested in the Colombian company.
However, the German food delivery company will keep a 7.9% stake, which represents about US$40 million, a seat on the board of directors and plans to monetize the remaining shares in the long term.
Delivery Hero’s Time at Rappi
The German company led a Series B investment round for Rappi in 2017. This was when the Colombian startup was valued at US$400 million.
Delivery Hero’s bet paid off: five years later they have almost recovered their investment in Rappi, whose valuation is now US$5.2 billion.
Now, the sale of Delivery Hero’s stake in Rappi comes against a backdrop of expansion for the German company. This is because they require capital to complete the acquisition of Glovo, a delivery company based in Catalonia.
Just a week ago, Delivery Hero announced their acquisition of 39.4% of Glovo. This is in addition to the 44% stake they already held in the company, bringing it to just over 80% in the firm.
Rappi continues to expand its business verticals. Although at the beginning it was only a delivery service, they soon debuted their financial services. By 2021 they ventured into travel with Rappi Travel, which sells airline tickets and hotel reservations.
This new arm had a monthly growth of 35% and around 150,000 passengers. By 2022 they want to reach US$120 million in sales and have operations in Mexico, Peru, Argentina, Brazil, Chile, and Colombia, reported Forbes Colombia.
So far Delivery Hero is a public company and has a presence in Europe, Asia, Latin America, the Middle East, and North Africa. Rappi is present in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, and Uruguay.
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