iFood Hits $5.4B Valuation, Surpasses Colombian Rival Rappi

The Brazilian delivery company has become Brazil’s most valuable startup and the second most valuable in Latin America

The transaction makes iFood the most valuable startup in Brazil and one of the second-most valuable startup in Latin America behind Kavak.
August 19, 2022 | 11:35 AM

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Bloomberg Línea — Prosus, a Dutch investment group that is part of Cape Town-based Naspers, now owns a third of Brazil’s delivery behemoth iFood, and which has achieved a valuation of $5.4 billion, making it Brazil’s most valuable startup and the second most valuable in Latin America.

Prosus paid $1.8 billion for a 33% share in the Brazilian delivery company, valuing the iFood business at $5.4 billion, while its Colombian rival Rappi is valued at $5.25 billion after a $500 million funding round in July, according to data provider PitchBook.

The most valuable startup in the region is used-car sales platform Kavak, with a valuation of $8.7 billion.

Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE:PRX) and a2X Markets (PRX.AJ).


Under the deal, the group, which is the largest shareholder in Movile, the holding company that owns iFood, will acquire the remaining 33.3% of iFood that Dutch delivery company Just Eat had.

The transaction is valued at 1.5 billion euros ($1.5 billion) plus contingent consideration of up to 300 million euros. After the transaction, Prosus and its affiliate, Movile , a Brazilian investor in technology companies, will fully own iFood.

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According to Bloomberg News, Just Eat had said last year that a €2.3 billion offer, which would value iFood at $6.9 billion, was inadequate.


Prosus/Naspers first invested in Movile in 2013. “iFood stands out among the first to develop its own delivery, which is now profitable,” Prosus said in a press release.

“Increasing our stake to full ownership is a demonstration of our committed and disciplined investment approach, and reflects our confidence in iFood’s long-term potential,” said Prosus CEO Bob van Dijk.

In the delivery sector, Prosus is also an investor in India’s Swiggy and Germany’s Delivery Hero.

At its most recent shareholder meeting in June, Prosus said iFood was able to generate a profit in its core restaurant delivery business after receiving a $200 million investment in 2021.

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According to Prosus, for the fiscal year ended March, iFood grew revenue by 29% and had 41% growth in gross merchandise value, to $6.9 billion.

Operating profit for the restaurant delivery business was $10 million, which was down 66% from $30 million in the same period last year.

Total iFood revenue grew to $991 million in the fiscal year ended March as it expanded to additional cities in Brazil, while the loss for the entire operation increased to $206 million, attributed to investments in the supermarket delivery front.


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