Rappi Getting Ready for IPO ‘When It Makes Sense’

Delivery service Rappi is getting ready for a future initial public offering (IPO).

The company, which is one of Latin America’s most valuable startups, does not have a timeline for an IPO but aims to be ready for one “when it makes sense,” Rappi Chief Financial Officer Tiago Azevedo told Bloomberg in an interview posted Thursday (April 11).

Azevedo is Rappi’s first CFO and he was hired in February to get the company ready for a future IPO, according to the report.

In a LinkedIn post announcing that he was joining Rappi, Azevedo wrote: “I’m fully convinced that the technological transformation in the region is just starting, and this is an incredible opportunity to be part of it in a company that is not only innovating on many fronts but also deeply committed to making a positive impact on our region.

“I’m passionate about Rappi’s purpose of transforming the way people shop and how businesses operate in the region,” he added in the post. “Being able to contribute to reshaping the future of Latin America’s economy and entrepreneurial landscape is truly inspiring.”

Rappi was founded in 2015, expanded across Latin America, and broke even for the first time in 2023, according to Thursday’s Bloomberg report. The company was valued at $5.25 billion in July 2021, the most recent figure that is available.

“There is no rush to go public, especially now that we are very stable in terms of projections for cash generation,” Azevedo said in the report.

In recent moves, Rappi slashed its marketing costs to reduce cash burn, improved its delivery algorithms to improve service to customers that pay subscription fees, and expanded its offerings from grocery and restaurant delivery to also include travel packages and credit cards, per the report.

It has also earmarked $110 million to invest in Mexico, which is its largest market, and acquired competitor Box Delivery in 2023 to expand its logistics and delivery services in Brazil, according to the report.

PYMNTS reported in January 2022 that Rappi had already become a super app. At that time, the company was delivering restaurant meals, groceries and consumer goods as well as offering an entertainment hub with games, music and live events.