Rappi Raises Over $500M at $5.25B Valuation

Rappi Secures $500 Million in Series F Funding

Rappi, a leading on-demand delivery startup originating from Colombia, has successfully secured funding exceeding $500 million. This investment results in a company valuation of $5.25 billion, as announced late Friday.

The Series F funding round was spearheaded by T. Rowe Price, with significant participation from several other prominent investors.

Investor Participation

Among those contributing to this new funding event were Baillie Gifford, Third Point, Octahedron, GIC, and SoftBank.

Rappi has also benefited from the support of previous investors, including DST Global, Y Combinator, Andreessen Horowitz, and Sequoia Capital.

Growth and Expansion

This latest financing brings the total capital raised by the Bogota-based Rappi to over $2 billion since its establishment in 2015, as reported by Crunchbase.

Currently, the company operates in nine countries and extends its services to more than 250 cities throughout Latin America. Its prior funding round, amounting to $300 million, was completed in September 2020.

Service Evolution

Initially focused on beverage delivery, Rappi has strategically broadened its offerings, according to the Latin American Venture Capital and Private Equity Association (LAVCA).

The platform now encompasses meals, groceries, technology products, and even pharmaceutical items. Furthermore, Rappi provides a convenient cash withdrawal service, enabling users to utilize credit cards for payments and receive cash directly from a delivery agent.

The company asserts that its application now facilitates the ordering of virtually any product or service.

Beyond Traditional Delivery

Rappi distinguishes itself by offering ultra-fast delivery options, with certain products delivered in under 10 minutes.

The platform also integrates financial services, alongside unique features termed “whims” and “favors.” “Whims” allow users to request any item available within their service area.

“Favors” provide a diverse range of personalized services, including errand running, hardware store visits, and gift selection and delivery. These features directly connect users with a courier.

Company Origins

Founded in 2015 by Simón Borrero, Sebastian Mejia, and Felipe Villamarin, Rappi successfully completed the Y Combinator program the following year.

Andreessen Horowitz’s (a16z) initial investment in July 2016 marked the Silicon Valley firm’s first venture into the Latin American market, as noted by LAVCA.