Simon Borrero, co-founder of the Colombian startup Rappi, has announced the company's intention to potentially list on the New York Stock Exchange within the next year. This development comes as the mobile delivery service app, which operates across nine Latin American countries, continues to expand its reach and diversify its offerings.
Rappi, founded in 2015 in Bogotá, has rapidly grown to become a major player in the Latin American tech scene. The company's valuation exceeds $5 billion, earning it the coveted "unicorn" status in the startup world. Notably, Rappi achieved this milestone in 2018, becoming the first Colombian startup to do so.
The company's growth has been fueled by significant investments, including a $1 billion injection from SoftBank in 2019, which marked the Japanese conglomerate's largest investment in Latin America at the time. This backing has allowed Rappi to expand its services beyond simple food delivery, now offering a range of options including grocery delivery, cash withdrawal services, and even a travel booking platform launched in 2020.
Borrero emphasized that while the company is preparing for a potential IPO, they are not in a rush to go public. He stated, "We're patient, we're not anxious because we're already profitable, so we'll be measuring it so that we pick a good moment." This approach reflects Rappi's improved financial performance, with better earnings reported in the previous year.
Rappi's services have evolved significantly since its inception. The company now offers digital banking options in Colombia and various financial services in Mexico, Brazil, Peru, and Chile. In 2021, Rappi partnered with Visa to launch a prepaid card in Brazil, further expanding its fintech offerings.
Despite its success, Rappi has faced challenges, including labor disputes and regulatory hurdles regarding worker classification and benefits in some countries. The company has also been involved in social initiatives, such as food donations during the COVID-19 pandemic, demonstrating a commitment to corporate social responsibility.
As Rappi prepares for its potential NYSE debut, it continues to innovate, using AI and machine learning to optimize delivery routes and enhance user experience. With its RappiPrime program, similar to Amazon Prime, and unique features like "Rappi Favors" for various on-demand services, the company is positioning itself as a comprehensive lifestyle app for Latin American consumers.
The coming months will be crucial for Rappi as it undergoes the necessary audit processes and refines its projections in preparation for a possible IPO. As the first Colombian unicorn contemplates this significant step, it may pave the way for other Latin American startups to follow suit in accessing global capital markets.