Internet and telecommunications group SoftBank is investing up to $1bn in Colombia-based logistics platform Rappi, it announced yesterday.
The corporate’s $5bn Innovation Fund, which it is currently in the process of raising, supplied half the capital while its Vision Fund provided the other $500m.
Founded in 2015, Rappi operates an on-demand delivery service that was present in 35 cities across Argentina, Peru, Chile and Uruguay as well as its home country, as of the end of 2018.
The company collects and delivers orders of consumer goods and is diversifying into other areas such as medicine deliveries and the establishment of a digital payment platform.
Marcelo Claure, SoftBank Innovation Fund’s CEO, 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 startups 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.”
The deal comes after Rappi secured $200m in an August 2018 round led by investment firm DST Global and backed by venture capital firms Andreessen Horowitz and Sequoia Capital, at a $1bn valuation.
Food ordering platform Delivery Hero is also an investor in the company, having provided $105m of a $167m round that closed in April 2018 with backing from Andreessen Horowitz and Sequoia.
The latter two had previously joined DST to provide $9m for Rappi in 2016, and Redpoint eVentures is also among Rappi’s earlier investors.
