Rappi Secures US$100 Million Financing on 10th Year in Mexico

During its 10-year anniversary event in Mexico, Rappi announced it secured US$100 million in a financing credit line, led by Key Gorse World Private Credit with participation from Santander. The capital is designated for service expansion, working capital optimization, and accelerated growth in the Mexican market.

"Being at the scale we are as a company, not yet in a public market but able to access credit lines of this magnitude, demonstrates the operational and financial discipline the company has achieved, the maturity we have as a company, and the great international bet major corporations are taking on our business model," says Ivan Cadavid, CEO, Rappi.

This financing announcement comes at a key moment for Rappi. The company has solidified its position in Latin America after a decade of operations. It began in Colombia in 2015 and established its presence in Mexico just three months later. Since then, the Mexican market has become a cornerstone of its regional strategy.

“In 2018, Rappi reached "unicorn" status, validating its business model internationally. In 2020, its role as a social and economic coordinator expanded during the COVID-19 pandemic, strengthening its logistics infrastructure. Finally, in 2023, the company achieved profitability, a crucial goal that proves its operational sustainability,” says Cadavid.

Rappi operates in over 110 cities in Mexico, has accumulated over 23 million downloads, and has processed more than 700 million orders in the country.

Strategic Pillars: Logistics and Advertising Technology

The company is prioritizing an ultra-fast delivery service, Turbo, launched in 2021. This model relies on a network of dark stores strategically located in areas with high population and traffic density. The system's efficiency is based on two key components: an inventory management technology that processes each order in under two minutes with 99.9% accuracy, and a predictive algorithm that anticipates demand to optimize courier availability.

This technological approach has allowed Rappi to record average delivery times between 10–12 minutes nationwide, establishing itself as a leader in the convenience segment. The company has expanded this model to other categories, such as TurboPharma for medicines and a 15-minute restaurant delivery service.

In parallel with its logistics development, Rappi has built its advertising arm, RappiAds, into a retail media platform. The platform's technology not only offers visual advertising solutions but also solves operational challenges for its business partners, which include Grupo Modelo and Coca-Cola. The ability to update inventories every two minutes in Turbo's dark stores is a technological solution that directly impacts campaign effectiveness and the end-user experience, says the company.

The platform leverages its vast first-party data to personalize the user experience, using AI models to generate suggestions and predictive shopping lists. For its commercial allies, Rappi developed robust internal teams dedicated to data analysis. These teams provide brands with strategic information and insights that help them optimize their digital marketing budgets and improve their positioning within the ecosystem.

Navigating the Regulatory Environment and Future Outlook

Rappi recently had to adapt its processes to comply with Mexico’s labor reform, which regulates work through digital platforms. The company implemented the necessary adjustments to comply with the reform from its effective date on July 1. By the end of that month, it had already registered 150,000 couriers with the Mexican Social Security Institute (IMSS), ensuring that 100% of its active fleet has work-risk insurance, says the company. 

Finally, Rappi says that the US$100 million financing will be used primarily to accelerate results in Mexico. The funds will allow the company to expand its presence, strengthen its key business units — restaurants and retail — and restructure past debts to optimize its working capital.

The company's strategy will focus on maintaining a balance between accelerated growth and the financial discipline that allowed it to reach profitability. The goal is to continue being a vanguard platform, constantly innovating to solve user needs and consolidating its tripartite ecosystem of users, commercial allies, and couriers.