Rappi reportedly expects to be in a position to launch an initial public offering (IPO) within the next 12 months.
The Colombia-based startup, which offers delivery services in nine countries and is one of Latin America's most valuable startups, has seen its revenue double over the past three years and is profitable enough to consider an IPO, Bloomberg reported Monday (Sept. 16).
"We will be ready in a year, but we are not in a hurry," Rappi Co-Founder Simon Borrero said during a press conference, according to the report.
Rappi was founded in 2015, reached break-even in 2023, is investing to expand in Mexico and Brazil, and plans to expand to Central America, the report said. Its operations now include 400 cities, 350,000 delivery workers and 500,000 affiliated stores.
With the company now profitable, it can finance growth through revenue rather than by selling debt or equity, per the report.
Rappi Chief Financial Officer Tiago Azevedo told Bloomberg in April that the company did not have a timeline for an IPO but aimed to be ready for one "when it makes sense."
Azevedo is the company's first CFO and he was hired in February to get the company ready for a future IPO, according to the report.
"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 April report.
Rappi said Sept. 5 that it acquired Fountain9, a company in India that provides supply chain solutions. The company added that Fountain9's existing team will join Rappi as part of a newly formed entity in India that will work to acquire talent and strengthen its operations in Latin America.
Fountain9's inventory planning platform using artificial intelligence (AI) to provide users with demand sensing, pricing optimizations and predictive inventory planning.
"Acquiring Fountain9 assets is a game-changer for Rappi as we continue to push the boundaries of what's possible with AI and supply chain technology," Rappi Co-Founder Felipe Villamarin said in a press release announcing the acquisition. "This acquisition not only strengthens our Turbo operations but also allows us to offer state-of-the-art supply chain solutions to external partners, further establishing Rappi as a tech-driven company."