Colombia's Davivienda, Rappi to invest $50M in new digital bank

Colombian lender Banco Davivienda SA's board approved a framework agreement to invest in the bank's joint venture with logistics giant Rappi SAS, according to a filing from the bank.

The framework agreement will allow Davivienda, through Corporación Financiera Davivienda SA and Rappi, to move forward in the strategic alliance with the logistics company and apply for a banking license with the Colombian financial regulator.

According to a report from La República, the joint investment will be worth $50 million, while a formal request to create a 100% digital bank will be made next week. The new bank is expected to launch in December, the newspaper reported.

Banco Davivienda and Rappi already offer joint payments services through RappiPay, which reportedly now has 730,000 users. Both companies look to expand to 1 million users during the launch.