Colombian Delivery App Rappi To Go Public Next Year
Colombian delivery app Rappi Inc. is planning its initial public offering (IPO) for late in 2022, co-founder Juan Pablo Ortega told Bloomberg at the Web Summit conference in Lisbon, Portugal, for its report Friday (Nov. 5).
Rappi, which is backed by SoftBank Group Corp., has “held informal conversations with banks, and plans to hire advisers and prepare its listing paperwork in the first half of 2022,” the Bloomberg report says.
“We plan to IPO in the U.S next year,” said Ortega.
A Rappi spokesperson told Bloomberg by email that no conversations or external actions have been initiated regarding an IPO for the company, calling Ortega’s statements his “personal feelings” that don’t represent the company’s goals.
Rappi’s value hit $5.25 billion after a $500 million funding round in July, according to data provider PitchBook. Its investors include Sequoia Capital, Andreessen Horowitz and Tiger Global Management.
Related: Rappi To Introduce Credit Cards In Brazil With Visa
In July, Rappi launched a Visa credit card program for Brazilian users, including the RappiPrime Infinite and no-fee RappiGold, which offer a minimum of 3% cash back on Rappi purchases or at least 1% with other merchants. Rappi also intends to grow financial services in other markets.
Last year, alternative online payment platform SafetyPay teamed with Rappi for cash solutions and instant reconciliation through its network of 380 financial institutions in 17 countries.
Also read: Rappi, Uber Eats Triumph In Initial Round Of Antitrust Case
In March, Rappi and Uber Eats won the first round of a dispute against Brazilian rival iFood, when antitrust watchdog CADE said iFood can’t sign exclusivity deals with restaurants and can’t change contracts including the exclusivity clauses until the case is resolved.
Rappi’s initial complaint said iFood was eliminating competition through the demands that restaurants only work with iFood, creating high barriers of entry for new delivery companies. Uber Eats backed Rappi’s complaint.
Earlier this year, Uber and Rappi dropped their fees for meal delivery in Mexico.