Colombian delivery startup Rappi is positioning itself to potentially launch an initial public offering (IPO) within the next 12 months. Having experienced significant growth in revenues and operations across Latin America, Rappi aims to capitalize on its profitability to fuel further expansion. The company’s strategic investments and market presence may soon make it a notable player on the global public markets.
Earlier statements from Rappi executives indicated no urgency to go public, emphasizing stability and cash generation over an immediate IPO. With the recent shift toward being ready in a year, the company appears to be aligning its growth trajectory with evolving market opportunities.
What Factors Are Driving Rappi’s IPO Readiness?
Rappi’s readiness for an IPO is driven by its doubling revenues over the last three years and achieving profitability in 2023. The company operates in nine countries, has expanded to 400 cities, engages 350,000 delivery workers, and partners with 500,000 affiliated stores.
“We will be ready in a year, but we are not in a hurry,” Co-Founder Simon Borrero stated during a press conference.
How Is Rappi Planning to Finance Its Growth?
Having reached profitability, Rappi plans to finance its growth through revenue rather than through debt or equity sales. This financial stability allows the company to invest in expansion and new initiatives without relying on external funding.
“There is no rush to go public, especially now that we are very stable in terms of projections for cash generation,” Chief Financial Officer Tiago Azevedo said.
Rappi recently acquired Fountain9, an India-based company providing supply chain solutions utilizing artificial intelligence (AI). This acquisition aims to enhance Rappi’s operations and offer supply chain technologies to external partners.
“Acquiring Fountain9 assets is significant for Rappi as we continue to push the boundaries of what’s possible with AI and supply chain technology,” Co-Founder Felipe Villamarín said.
As Rappi positions itself for a potential IPO, its focus on profitability and strategic expansion reflects a broader trend among technology startups aiming for sustainable growth before entering public markets. The company’s investments in AI and supply chain capabilities signal a commitment to innovation, which may strengthen its competitive edge in the rapidly evolving delivery service sector. Investors and market observers will be watching closely to see how Rappi navigates this next phase of its growth.
