Rappi Targets an IPO Within a Year

Colombian startup Rappi is preparing for an initial public offering (IPO) on the New York Stock Exchange within the next year. Co-founder Simón Borrero recently confirmed that the company aims to be ready for the public offering by completing necessary audits and establishing robust financial projections.

Founded in 2015, Rappi initially focused on grocery and prepared food delivery in Colombia. It has since expanded its services across nine Latin American countries, evolving into a comprehensive delivery platform with a current valuation exceeding $5 billion. Rappi’s business model encompasses not only delivery services but also digital banking options in Colombia and various financial products in Mexico, Brazil, Peru, and Chile.

Despite a challenging environment for quick-commerce companies globally, including layoffs among competitors in the U.S. and Europe, Rappi remains optimistic about its potential in Latin America. The region’s unique economic conditions, such as lower labor costs and a growing e-commerce market, offer opportunities for Rappi to succeed where others have faced difficulties.

The company recently acquired the Indian firm specializing in artificial intelligence-driven supply chain solutions, Fountain9.

As Rappi prepares for its IPO, its performance in the coming months will be closely monitored. The company’s ability to navigate the complexities of rapid growth, profitability pressures, and market competition will be crucial in determining the timing and success of its public offering.