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RappiPay obtained $112 million to expand financial inclusion in Colombia

RappiPay, the Colombian fintech owned by Rappi and Banco Davivienda, announced that it had obtained $112 million in credit financing that will continue increasing its service offering and consolidating the RappiCard, its most recent product.

Gabriel Migowski, CEO of RappiPay, affirmed in an interview with Fintech Nexus that the resources of this debt will be injected through a syndicated loan from prominent financial institutions in Colombia and Latin America, such as Bancolombia, Banco de Bogotá, Davivienda, and Itaú.

“This is confirmation that we are on the right course. Such a large debt contribution is very rare in our region and evidences the confidence the market has in our business and the steps we are taking,” Migowki told Fintech Nexus.

In an official statement to the market, RappiPay commented that this credit would allow the company to continue growing to offer better financial services for more Colombians. “This is an important step for us. It shows the market’s confidence in RappiPay and guarantees us the resources to continue delivering on our promise of value,” it continued.

RappiPay illustration

$100 million agreement

Last November, Rappi and Davivienda Bank had sealed an agreement to invest $100 million in the financial platform.

According to company figures, RappiPay has already issued more than 215,000 credit cards in the country, through which it has issued close to USD 4 million in cashback, highlighting that for more than 40% of users, this is their first credit card. Thus, in just over a year, more than 80,000 new users have entered the financial system with a RappiPay product.

“The credit contribution we obtained is very positive for us, other fintechs, and the economy. It will certainly have a significant impact on reducing costs and improving profits in our market,” commented RappiPay’s CEO.

So far this year, RappiPay has taken consistent steps to expand its services in Colombia. In June, the Colombian Financial Superintendency (SFC) granted authorization to the fintech to operate as a financial entity in the country. 

Launched using Daviplata

The LatAm fintech began operating in Colombia as a digital wallet, using the Daviplata platform for customers to make payments, transfers, and purchases. With authorization from the SFC, Rappi started offering deposit and savings services through its platform.

The startup so far offered a credit card and an electronic deposit account, as well as other financial services in Colombia, Mexico, Brazil, Peru, and Chile that vary depending on the regulations in each country, but did not have the complete offering of a digital bank.

The company has already delivered more than 215,000 credit cards in the country, delivering close to $25 billion in cash back.

RappiPay is currently the largest fintech in Colombia, with 800,000 customers acquired in the last three years since the company’s inception in April 2019. 

The parent company of the fintech, Rappi, currently operates in over 250 cities in nine Latin American countries and becomes a unicorn in 2018 after a $200 million round from DST Global.

The most significant contribution to the startup came in March 2019, when it received $1 billion from SoftBank, which became, at the time, the most considerable investment obtained by a Latin American startup. In August this year, Rappi raised just over $500 million in new funding round, bringing its valuation to $5.25 billion.

  • Jorge C. Carrasco

    Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.

    He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.