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January 11, 2022

Delivery Hero sells stake worth $150m in Rappi

Going forward, Delivery Hero plans to monetise its remaining stake in Rappi at an appropriate valuation.

German online food delivery service Delivery Hero has divested a $150m stake in Latin-American delivery company Rappi.

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Through a series of transactions, Delivery Hero has now sold nearly all of its total invested capital in Rappi.

With the latest divestment, Delivery Hero holds a stake of approximately 8% in Rappi on a fully diluted basis. The holding is valued at more than $400m, according to the Series F valuation.

Rappi is headquartered in Colombia and delivers orders from a wide range of restaurants such as Subway, Papa Johns and Burger King, according to its website.

Rappi operates in Argentina, Brazil, Costa Rica, Chile, Ecuador, Mexico, Peru and Uruguay.

In April 2020, Rappi began trialling robot food deliveries amid the Covid-19 crisis.

Delivery Hero made its first investment in the Latin-American company when it was valued at approximately $400m.

In a statement, Delivery Hero said: “Rappi’s financial performance is a testament to the company’s overall fantastic growth and strong business model.

“However, Delivery Hero will continue to exercise a disciplined capital allocation, and focus on investments that are in line with the group’s strategic vision.”

Going forward, the food delivery company plans to monetise the remaining stake in Rappi at an appropriate valuation.

Last December, Delivery Hero announced its plan to reduce Foodpanda operations in Germany as well as divest Foodpanda Japan in Q1 2022.

The company plans to only operate Foodpanda in several German cities, including Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart. However, it will continue to operate its Berlin-based hub to trial new product features and technologies.

The divestiture of Foodpanda Japan is said to be part of Delivery Hero’s focus on other growth priorities.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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