Business

Colombian Rappi raises $300 million in new investments

Different from other rounds, the company did not detailed how is going to use the new investment led by T. Rowe Price

Rappi delivery partner
Colombian app Rappi. Photo: Shutterstock
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  • The company said that the round was led by the American investment firm T. Rowe Price;
  • Also according to Reuters and O Estado de S.Paulo, with the new investment, Rappi was valued at $3.5 billion.

The Colombian delivery startup Rappi received a new investment round of more than $300 million. In a statement sent to the Brazilian newspaper O Estado de S.Paulo, the company said that the round was led by the American investment firm T. Rowe Price.

According to Reuters and the Colombian newspaper La República, the investment took place on September 18. Last year, the company, founded in 2015, raised $1 billion with SoftBank (the first and largest investment by the Japanese group’s fund in Latin America).

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Also according to Reuters and O Estado de S.Paulo, with the new investment, Rappi was valued at $3.5 billion.

Unlike other rounds, the startup did not detail the destination of the new investment. Sources heard by O Estado de S.Paulo say that this could mean that the company will use the money to balance its operations in the midst of the coronavirus pandemic, or that it intends to make new acquisitions and debut on new fronts.

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In January, the company announced that it was laying off 300 employees, about 6% of its workforce in Latin America (Rappi operates in nine countries in the region), as part of a restructuring that sought to prioritize the technology and user experience areas over others.

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