Food delivery startup Thrive to shut down operations
Food delivery startup Thrive is shutting down its consumer app operations after four years amid intense competition from well-funded startups in the food tech space.
Krishi Phagwani, co-founder of the Mumbai-based company, shared on LinkedIn that the company has taken the “difficult decision” to shut down operations of Thrive Consumer App (currently based in Mumbai) and is working to transition its Thrive ONDC, Thrive Direct. , and Thrive Marketing Suite segments for “appropriate industry partners”.
Fagwani also added that there will be no disruption in payments, tax compliance, and reporting or invoicing.
“To our restaurant partners, customers, investors, and team: Thank you for placing your trust in us. It’s been an honor to serve this mission together, and I’m very proud of what we’ve built,” the post read.
In 2021, Jubilant Foodworks, which operates a line of global food chains in India, including Domino’s and Popeyes, acquired a 35% stake in Thrive. Following this, in 2023, Coca-Cola acquired a 15% stake in Thrive.
The company also indicated in the post that the company is struggling to survive amid increasing competition in the food tech space.
Zomato and the recently listed Swiggy mainly dominate the food tech space. Companies managed to overcome the epidemic through strategic acquisitions and changing business models. These two have also entered the race of fast commerce.
“The reality is that the current marketplace is dominated by a few well-funded giants, making it extraordinarily challenging for small, mission-based platforms like ours to grow into worthy restaurants,” the post read.
Thrive raised $2.5 million in three rounds of equity funding, according to data website Tracxn. It reported a marginal increase in FY23 revenue from the previous year’s Rs. 2.3 crore as against Rs. 2.5 crores. However, its net loss in the previous year was Rs. 2.8 crore to Rs. 7.4 crores.
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