Rappi, an on-demand delivery startup operating in Latin America, today
announced an investment of up to $1 billion from SoftBank Group Corp.
(“SBG”) and SoftBank Vision Fund (“Vision Fund”). The investment marks
the largest technology financing to date in a Latin America-based
company and, upon transfer to the Innovation Fund upon the fund’s
establishment, will be the first investment by the Innovation Fund,
which launched in March 2019 and is the largest-ever technology fund
focused exclusively on the fast-growing Latin American market. SBG and
the Vision Fund will each invest up to $500 million in Rappi.
Founded in 2015, Rappi has emerged as the leading service app in the
Latin American region, improving the lives of its users by offering
products across a range of categories, including restaurants, groceries,
drugstore medications and digital payment services. The investment will
enhance Rappi’s presence in existing markets and accelerate growth into
additional markets throughout the Latin American region, as well as into
additional product and service areas.
“This is the result of very hard work by all members of our team which
is absolutely committed to transforming the quality of life of Latin
Americans. We will continue to invest in Market-Creating innovations to
provide opportunities for millions in the region. It is time for a
technology-driven Latin America, and SoftBank’s support is essential to
lead this transformation,” said Simon Borrero, Co-Founder and CEO of
Rappi.
Marcelo Claure, SoftBank Group’s Chief Operating Officer, CEO of
SoftBank Group International and CEO of Innovation Fund, said, “Rappi’s
founders have a bold vision to create the premiere multi-service
‘super-app’ for Latin America, improving the lives of millions in the
region. In less than four years Rappi has become one of the fastest
growing start-ups in Latin America. This rapid growth demonstrates the
immense opportunity in the Latin American region. We are excited to be
investing in this passionate team of entrepreneurs and believe Rappi
will benefit from being a part of the greater SoftBank ecosystem.”
“SoftBank’s vision of accelerating the technology revolution deeply
resonated with our mission of improving how people live through digital
payments and a super-app for everything consumers need. We will continue
to focus on building innovations for couriers, restaurants, retailers
and start-ups that translate into new sources of growth,” said Sebastian
Mejia, Co-Founder and President of Rappi.
Jeffrey Housenbold, Managing Partner at SoftBank Investment Advisers,
said, “We are investing ahead of an incredible long-term growth
opportunity for Rappi. This rapidly-scaling company has the potential to
expand far beyond its current business and become one of the most
important technology companies in Latin America. By creatively
addressing the unique market dynamics of the region, Rappi is building a
robust technology platform of products and services designed to
revolutionize the way consumers shop and live their lives.”
In 2018, Rappi expanded the number of products delivered by seven times,
and registered a monthly growth of 20% in the seven countries where it
operates. Additionally, Rappi was accelerated by Y Combinator in 2016
and reached unicorn status last year.
In connection with the agreement, Jeffrey Housenbold will join the Rappi
Board of Directors. SBG and the Vision Fund join existing Rappi
investors DST Global, Delivery Hero, Sequoia Capital, Andreesen Horowitz
and Y Combinator.
About Rappi
Rappi is an all-purpose delivery application that aims to be the
personal assistant for its users. The LatAm-based startup is present in
Brazil, Colombia, Mexico, Argentina, Chile, Uruguay and Peru. Through
the platform, it is possible to buy products of different categories,
from Restaurants, Supermarkets and Beverages to literally anything. In
addition, the application has a virtual wallet, RappiPay, where it is
possible to make transfers and even payments in establishments. In 2016,
the company was accelerated by Y Combinator, the most important
incubator of startups in the world. At the beginning of 2018, it
received a contribution of US $185 million, which allowed its expansion
in Brazil and Latin America; in September of 2018, it received a new
contribution, this time US $220 million, becoming the new Latin American
unicorn.
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