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Prosus picks up remaining stake in Brazil’s iFood

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 19 Aug 2022

Prosus, a Naspers company, has entered into an agreement to acquire the remaining 33.3% stake in iFood, from minority shareholder Just Eat for EUR1.5 billion (R25.5 billion) in cash plus a contingent consideration of up to EUR300 million (R5.1 billion).

Following the transaction, Prosus and its affiliate company, Movile (a Brazilian investor in technology companies) will fully own iFood.

Prosus’s global portfolio of online food delivery companies includes iFood in Latin America, Swiggy in India, and Delivery Hero, which has a presence in more than 50 countries.

The company is also an active investor in adjacent businesses including Flink, Foodics, Oda and Sharebite.

iFood is a platform business which includes food delivery, grocery, quick commerce, and fintech; and Prosus says the business has performed exceptionally well since it first invested in the company through Movile in 2013.

“We first invested in iFood nearly a decade ago and during this time, [iFood CEO, Bloisi] Fabricio and team have built a world-class food delivery business. They have shaped the sector in Brazil, creating a platform that serves 330 000 restaurant partners, provides income opportunity for 200 000 delivery partners, and delivers approximately 70 million orders every month,” says Bob van Dijk, Prosus CEO.

“Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood. We are excited to continue to be a supportive and active partner for iFood as the company steps into its next phase of innovation and growth.”

Commenting on the latest transaction, Fabricio Bloisi, Movile founder and iFood CEO, says: “Prosus has been a committed partner to iFood and Movile over the last decade. I am delighted that they continue to have such strong belief in our vision and ability to build a successful business that Brazilians can continue to be proud of.

“Together we will build a platform of offerings that provides Brazilian customers, delivery partners, restaurants and more with the best experience in food, grocery delivery and fintech.”

Similalry, Larry Illg, CEO of Prosus Food, says: “The Brazilian Food Delivery sector has grown significantly over the past four years. There is substantial opportunity for further expansion in both the restaurant food delivery business and through building out the platform in areas such as grocery and quick commerce.

“iFood has established itself as a technology leader in Brazil and its success places it among the most innovative food delivery companies across the globe. We are thrilled to be fully backing the company on its path to transform the entire food chain to better serve customers.”

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