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