iFood Plans $4.7 Billion Investment in Brazil to Boost Delivery and Fintech
iFood's Strategic Investment and Expansion in Brazil
By Igor Sodre
Overview of the Investment Plan
SAO PAULO, Sept 16 (Reuters) - Brazilian delivery app iFood, owned by Dutch investment group Prosus, said on Wednesday it will invest 24 billion reais ($4.66 billion) in the South American country in the fiscal year through March 2027, a 41% increase from its previous investment cycle.
Key Focus Areas for Spending
Strengthening Restaurant Operations
The company will direct spending across four areas: strengthening restaurant operations, expanding new delivery categories such as pharmacies and pet shops, developing proprietary technology, and growing its fintech unit iFood Pago.
Expansion into New Delivery Categories
• Tech and innovation investment to exceed 2 billion reais, including AI agents and a generative AI model developed jointly with Prosus, iFood said.
Technology and Innovation Initiatives
• Non-restaurant delivery businesses expected to account for about 40% of revenues and results by end of this year, CEO Diego Barreto told Reuters.
Growth of Non-Restaurant Delivery Businesses
• Previous investment cycle resulted in growth of 60% in grocery, 70% in pharmacy, and over 100% in pet shops, he added.
Competitive Landscape
Market Competition and iFood's Response
• Barreto said competition from Didi-owned 99Food and Meituan-controlled Keetha does not concern the company, citing iFood's capacity to innovate.
Financial Context
($1 = 5.1527 reais)
Reporting Credits
(Reporting by Igor Sodre; Writing by Gabriel Araujo, Editing by Louise Heavens)
