Latin America’s online food delivery sector is a pretty competitive space. In Brazil alone, new players (Foome) and major entities (Peixe Urbano) alike are among those duking it out for hungry customers. But now, thanks to a new investment, it looks like iFood is going to get a leg up on the competition.
iFood has garnered an investment of US$2.75 million (R$5.5 million) from Movile.
Founded in 2011 as an online delivery web platform, iFood launched its mobile application in 2012. According to the investment announcement, the startup boasts a 20% monthly growth rate and is active in São Paulo, Rio de Janeiro, Salvador, Recife, Fortaleza, Santos, Jundiaí and Campinas.
With the Movile funds, the iFood team will seek to improve how users experience its application and also offer consumers more options. It will increase its current catalog of roughly 2,000 eateries to over 5,000 restaurants by 2015. Also on the menu: the possible expansion of iFood into other Latin American locales.
With the investment, Movile becomes a shareholder in iFood, though the exact details of the deal have not been revealed.
As Latin America’s leading mobile internet services company, Movile is placing its bets on the mobile potential of iFood. The company’s portfolio includes mobile entertainment, marketing, messaging and utilities as well as the much-anticipated rise of mobile payments and m-commerce.
Fabrício Bloisi, CEO of Movile, predicted that e-commerce business will soon be migrating towards mobile, citing that mobile devices already account for 2% of e-commerce purchases in Brazil (that figure currently stands at 10% in the United States). He estimated that m-commerce will represent 8% of all e-commerce sales and US$750 million (R$1.5 billion) by 2014.