Business

Rappi and Mexico's Banorte launch financial services venture

The new partnership results in a venture co-owned by the two firms and that will operate in Mexico

One of the four first pit stops of Rappi in Bogotá, Colombia.
One of the four first pit stops of Rappi in Bogotá, Colombia. Photo: Rappi/Twitter
  • This initiative will form a broad digital financial ecosystem;
  • Banorte promised to make up to $178.6 million available to the new company.

Mexico’s Grupo Financiero Banorte and the Colombian Rappi have struck a partnership to become co-owners of a digital financial services venture in Mexico, Reuters reported it. Each will own half of the company, in a deal that still requires Mexican regulatory approval.

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According to the companies statement, this initiative will form a broad digital financial ecosystem, which will coexist with digital mobility services and e-commerce.

The alliance, would initially be focused on Rappi’s customers who, according to the companies, now need this type of digital applications because of the pandemic.

“This operation is aligned with Banorte’s digital and technological strategy where, in addition to providing digital banking and financial services to its clients, (…) it seeks to be present (…) and gain penetration in the digital financial services sector”, affirmed Banorte in a statement sent to the Mexican Stock Exchange.

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A spokesperson for Rappi told Reuters that the new partnership with Banorte will only operate in Mexico. On its behalf, Banorte promised to make up to $178.6 million available to the new company within 18 months, most of which are subject to performance metrics.