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Delivery Hero Sells Most of Its Rappi Shares

The German food delivery company will still retain its 7.9% stake in the Colombian startup, and a seat on the board of directors

Don't worry, we speak : Español (Spanish), too!

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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