González Calvillo helps Rappi create fintech JV with Mexico’s Banorte

Mexican law firm González Calvillo has supported online retail delivery company Rappi in its strategic alliance with Grupo Financiero Banorte in the creation of a new digital financial services entity in the country. 

Founded in 2015, Rappi delivers goods ranging from restaurant food and groceries to medication and furniture, and has branched out into basic banking services. Founded in 1899, Grupo Financiero Banorte is one of the four largest commercial banks in Mexico.

Through the agreement, Rappi and Banorte will become 50/50 owners of the newly created company that will offer digital financial services to Rappi’s clients in its initial phase.

Both owners will maintain equal participation on the board of the new venture.

The agreement is subject to obtaining the required regulatory authorizations from the financial and economic competition authorities. Through the agreement, GFNorte committed to make available up to 4 billion pesos ($176 million) to the new company over a period of 18 months, provided that the option to deliver 3 billion pesos of that amount is subject to achieving certain performance metrics.

This operation is aligned with GFNorte’s digital and technological strategy where, in addition to providing digital banking and financial services to its clients, GFNorte seeks to be continuously present and gain market share in the digital financial services sector, the Mexican bank said in a press release. Through the new venture, the bank will be part of a broad digital financial ecosystem where digital mobility, commercial and payment services will be offered.

Additionally, through the new venture, Banorte will gain access to a broader base of young users, loyal to digitisation and easily adaptable to new technologies and new ways of doing things, it added.

The law firm’s partners José Ignacio Rivero, Jose Victor Torres, Luis Mancera de Arrigunaga, Cristina Massa Sánchez (pictured), counsel Alberto Pliego Beguerisse and Lucia Fernandez, associates Jacinto Avalos Capin, Gabriel González Aragón, Rafael Fuentes Cataño, Andrea Cordero Olmos, Alfonso García de la Torre, Rosa Elena Coto, and Carlos Diz were involved in this transaction.