Delivery Hero reduces stake in Rappi

Germany based restaurant and grocery delivery giant Delivery Hero continues to rationalise its operations, with the news that it has sold a US $150 million portion of its stake in Latin-American delivery company Rappi.

Delivery Hero invested in Rappi in its Series B round when the firm was valued at approximately $400 million. Rappi then went on to grow quickly and in part due to this, Delivery Hero has reduced its stake in the firm to 7.9% with a series of share sales. There are plans to reduce the stake further over time.

This comes after news earlier this week that Delivery Hero had ceased operations in its home country of Germany. The company has stated that this latest divestment is as the company continues to ‘exercise a disciplined capital allocation’ and aims to focus on investments in line with its strategic vision.

The food and grocery delivery giant still has operations in more than 50 countries around the world. Given the fiercely competitive nature of the industry, few such businesses are profitable even while extremely large. It remains to be seen what other strategic divestments and withdrawals of operations that Delivery Hero plans in the next 12 months.

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