German food delivery giant Delivery Hero has sold a $150 million stake in its Latin American stake in Rappi, accounting for most of the investment it has made in the company, Reuters reported Monday (January 10).
Delivery Hero holds about 8% of Rappi, which is valued at $400 million, and will focus on other investments with the money it earns selling Rappi shares over time, according to the report.
Delivery Hero ended 2021 by announcing its takeover agreement to become the majority shareholder in Barcelona-based Unicorn Glovo, which values the latter at €2.3 billion ($2.6 billion), with the deal expected to close in mid-2022. Delivery Hero is 83.4% ownership in Glovo, up from 44%.
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Glovo bought delivery companies Lola Market in Spain and Mercadao of Portugal in September as part of plans to expand into Poland and Italy. This followed a $530 million Series F fundraising round by Glovo, which has 15 million active users in 1,300 cities in 25 countries in Southern Europe, Eastern Europe, the Middle East and Africa (EEMEA).
Delivery Hero operates in 50 countries across four continents. It promotes delivery of groceries and household goods to customers in less than an hour, sometimes as fast as 10 to 15 minutes. It bought an 8% stake in Berlin-based grocery delivery platform Gorillas with an investment of $235 million in September 2020.
Meanwhile, Delivery Hero’s Foodpanda unit is leaving six German cities — Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart — and selling Japan’s Foodpanda division in the first quarter of 2022. Just Eat Takeaway.com acquired Delivery Hero’s German operations in 2018.
See more: Delivery Hero leaves German cities and Japan, citing competition and lack of drivers
Delivery Hero returned to its home market in May and launched in Japan in September 2020. It will continue its operations in central Berlin, via an innovation center to test new features and technologies.