Khiron Life Sciences (TSXV: KHRN) this morning announced the significant development of establishing an exclusive partnership with that of Rappi SAS, the leading Latin American last mile multi vertical platform – think Amazon for South America. The agreement, among other items, outlines a six month exclusive distribution partnership between Rappi and Khiron for the firms CPG products.
The Rappi platform covers multiple verticals within its dominating position in the Latin American market. Backed by a US$1.0 billion investment by the Softbank Vision Fund, the firm provides digital banking and payment services as well as a swathe of products from food to pharmaceuticals, along with consumer packaged goods and delivery services.
The platform is currently present in Brazil, Argentina, Mexico, Peru, Ecuador, Uruguay, Colombia, Costa Rica and Chile, which collectively represents a population of 600 million people. Even more significantly, the platform boasts more than ten million active users monthly.
Under the terms of what is referred to as an “expansive” agreement, the partnership begins with exclusive distribution between Rappi and Khiron of the firms consumer packaged goods portfolio across all of Latin America. This distribution will occur through the Rappi platform, utilizing the Kuida in-app store within the platform that was first launched in Colombia in 2020 initially. Distribution will be expanded to Uruguay and Costa Rica next, and then will move into Brazil, Mexico and Chile following regulatory approvals.
Following the successful distribution of Kuida, Khiron’s line of branded CBD skincare products, the firms CBD-based Wellbeing branded products will also be introduced across Latin America.
“Rappi is the delivery brand that everyone in Latin America knows and uses daily. The partnership with Rappi reduces our product launch and logistics costs and transforms our availability and exposure to millions of customers across the region. Rappi is the last-mile delivery brand that will help us bring Khiron product to more customers than ever before.”
Alvarro Torres, CEO of Khiron Life Sciences
The current intent is that the partnership will enable Khiron to introduce its CPG offerings throughout all of Latin America, while lowering distribution, product launch and logistics expenses in the process. This will then increase margins for both partners, along with increasing availability and exposure of Khiron’s CPG portfolio.
Khiron Life Sciences last traded at $0.48 on the TSX Venture.
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