The popular wave of mega investments in tech startups has definitely reached Latin America. Rappi, the Columbian startup that specializes in on-demand delivery has raised a staggering $200 million in venture capital funding. This round of funding was led by DST Global with support from Andreessen Horowitz and Sequoia Capital. What’s more interesting is that this round of fundraising brings the total evaluation of Rappi to $1 billion, elevating it to the esteemed status of a unicorn.
The company began by delivering beverages and now has expanded to include meals, groceries, medication and even electronic gadgets. To take the element of convenience one step further, customers can effectively order cash online by paying through their credit cards and receiving cash from one of Rappi’s delivery agents. The company uses only motorcycles and bicycles for delivery, a strategy which allows it maintain the cost of delivery at $1.
Rappi was launched in 2015 by Simón Borrero, Sebastian Mejia, and Felipe Villamarin and quickly went on to grab the attention of major North American venture capitalists. This round of investments will make it a major competitor for Uber Eats, which is thriving across Latin America. The only other startup from the region to achieve the unicorn status is Nubank, which specializes in zero fee credit cards.