Rappi hopes to become a digital bank in Colombia in early 2022, executive says


Mobile delivery application Rappi hopes to obtain regulatory approval to operate as a digital bank in Colombia in the first quarter of next year, said an executive.

If licensed, the company plans to expand its services as a financial entity through RappiPay, a joint venture with the Davivienda bank, which already offers a credit card and an electronic account.

“We want to be a full-fledged bank, where we will be an ideal bank for all those who are part of the Rappi ecosystem – not only individuals who are consumers, but also Rappi delivery people and legal persons like businesses” , said the president of RappiPay Colombia. Gabriel Migowski told Reuters in an interview.

“Our main focus is on creating the best credit card experience so that we can then offer (services) to the small and medium businesses that operate within Rappi,” he added.

Rappi already offers financial services in Colombia, Mexico, Brazil, Peru and Chile, which vary according to the regulations of each country, but does not yet offer full banking services.

In Colombia, RappiPay has around 750,000 users and has distributed over 120,000 credit cards.

Rappi and Davivienda have pledged to invest around $ 100 million in RappiPay. “Both partners are committed to continuing to anchor the business as it grows,” said Migowski.

Rappi, founded in 2015, received a $ 1 billion investment from SoftBank Group Corp and operates in nine countries in Latin America.

In August, the company raised just over $ 500 million in a fundraising round, bringing its valuation to $ 5.25 billion.

The app has some 150,000 active delivery people.

Last week, Rappi said he had not taken any action on an initial public offering yet, after media quoted his co-founder as saying he would prepare the listing documents in the first half of 2022. Rappi said that Juan Pablo Ortega had expressed his own point of view.

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