Amazon makes investment into Latin American delivery startup 'Rappi'

Amazon makes investment into Latin American delivery startup 'Rappi'

Amazon.com Inc. has taken a strategic stake in Rappi Inc., a prominent Latin American delivery company. This investment, announced on September 8, 2025, aligns Amazon's retail and technology infrastructure with Rappi's robust logistics network. The deal, involving a $25 million convertible note, positions Amazon to potentially own up to 12% of Rappi through warrants if certain milestones are met [1].

Rappi, founded in 2015, is renowned for its "Turbo" service, delivering goods in less than 10 minutes. The company has expanded its services to include food delivery and financial services, such as digital wallets and credit cards. Rappi's backing includes SoftBank Group Corp., Sequoia Capital, and T. Rowe Price [1].

Amazon's investment in Rappi builds on existing commercial ties, with Rappi being a customer of Amazon Web Services. In Mexico, Amazon offers Rappi's services to its Prime members for free shipping. This strategic move aims to enhance Amazon's competitive edge in the Latin American e-commerce market, where MercadoLibre Inc. is a dominant player [1].

Rappi's co-founder and CEO, Simón Borrero, has expressed interest in a potential initial public offering (IPO) in 2025, possibly in New York. Last year, the company secured a $100 million loan from Banco Santander and Kirkoswald Capital Partners [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-08/amazon-buys-stake-in-latin-american-delivery-startup-rappi