Naspers CEO Fabricio Bloisi is building a global tech ecosystem, and Brazil’s iFood is a key example. The company has become a standout asset as Naspers works to unlock value beyond its Tencent holdings. Prosus, a Naspers subsidiary, first invested in iFood in 2013, when it was an online food ordering website in Brazil. Since then, iFood has transformed into a complex platform business, expanding its services to include grocery, quick commerce, and fintech solutions.
Diversification drives growth
In a recent shareholder letter, Bloisi highlighted iFood’s diversification as its edge in the competitive Latin American market. Non-food delivery units now account for 40% of revenues, growing at nearly 50% year-on-year. This diversification extends to deliveries for groceries, supermarkets, pharmacies, pet shops, and alcohol, showcasing iFood’s ability to adapt and expand its offerings to meet diverse consumer needs.
This strategy reflects Bloisi’s understanding of the risks in single-product e-commerce. By leveraging its network, iFood offers a range of services, from grocery and pharmacy deliveries to fintech solutions and business advertising. The fintech arm, in particular, provides payment solutions and credit to merchants, further embedding iFood into the business ecosystem.
Read Also: Print media shows resilience amid circulation decline
Expanding beyond food delivery
iFood’s evolution from an online food ordering website to a multiservice platform mirrors the growth of companies like Uber. With 100 million monthly orders as of late 2024, iFood has expanded into quick commerce and fintech, offering payment solutions and credit to merchants. The company also provides meal vouchers, an advertising platform, and material sourcing assistance, which helps merchants streamline their operations and grow their businesses.
A broader Latin American play
iFood’s reach extends beyond food, with cross-selling opportunities in travel, accommodation, and leisure through its Despegar unit. Prosus, which took full control of iFood for €1.5 billion in 2022, sees an addressable market of $100 billion in the region across its various offerings. According to a recent investor presentation, Prosus estimates that the addressable market for food delivery alone in the region is $8 billion, but this expands significantly when considering the additional services iFood now provides.
