Delivery Hero has generated a healthy return having sold part of its stake in delivery app developer Rappi, one of several investments in the Latin American market.

Local food delivery service provider Delivery Hero has sold $150m of shares in Colombia-based delivery service Rappi as food delivery services continue to grow around the world.

The divestment took place over a serious of transactions according to the company, which has retained a 7.9% stake in Rappi on a fully diluted basis, worth over $400m based on the $5.25bn valuation for its $500m series F round in July 2021. Delivery Hero said the $150m is close to the total amount of capital it has invested in Rappi.

Founded in 2015, Rappi operates a delivery app that operates across 250 cities in nine countries in Latin America, delivering groceries, medicine and consumer electronics in addition to food.

The online food delivery market has been thriving in Latin America in recent years, particularly since the onset of the covid-19 pandemic caused a spike in demand, growing by more than 30%…

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Fernando Moncada Rivera

Fernando Moncada Rivera is a reporter at Global Corporate Venturing and also host of the CVC Unplugged podcast.