Prosus: iFood's delivery business is close to breakeven

iFood's trading losses increased to $100 million, driven by the investment in grocery delivery

A iFood courier wears a face mask. — Photo: Nelson Antoine/Shutterstock

25.Nov.2021 08:54 BRT
UPDATED 10:12 BRT

iFood’s delivery orders grew 43% to over 300 million;
Prosus said that at 30 September 2021, iFood’s first-party orders in Brazil accounted for 35% of total orders.

Dutch multinational conglomerate company Prosus, which is the international Internet assets division of South African multinational Naspers, is the main shareholder of Brazil‘s Movile, owner of iFood.

In August it invested a further $120 million in iFood, through Movile. Recently, reporting its consolidated interim financial statements for the six months ended 30 September 2021, the companies said iFood grew GMV by 50% and revenue by 38%. Yet, iFood‘s trading losses increased to $100 million, driven by the investment in grocery delivery.

“iFood continued to operate well in the review period, even as local authorities across Brazil lifted restrictions on restaurant dining,” said Prosus.

iFood‘s delivery orders grew 43% to over 300 million, and added a coverage in 248 cities in Brazil, growing its restaurant base to 294, 000, up more than 10,000 from March 2021. Prosus said that iFood‘s core, the delivery business “is close to breakeven.”

Prosus said that at 30 September 2021, iFood’s first-party orders in Brazil accounted for 35% of total orders and exceeded the combined volumes of its first-party competitors.

“In the past 18 months, online grocery delivery has recorded unprecedented growth in markets around the world. In the Brazilian market, iFood is uniquely positioned to capitalise on this trend and is rolling out its best-in-class grocerydelivery service across the country. iFood ranked first among online groceries apps, resulting in some 17 million grocery orders from over 22,000 stores across 730 cities. This represents order growth of 182% versus the same period last year,” said Prosus.