The deal could be worth between R$5 and R$6 billion, making it iFood’s largest acquisition to date.
According to recent verified reports, Brazilian delivery giant iFood is negotiating to buy Alelo, a major player in meal vouchers. The deal could be worth between R$5 and R$6 billion, making it iFood’s largest acquisition to date.
Alelo is jointly owned by Brazil’s banking giants, Bradesco and Banco do Brasil. Bradesco has reportedly led discussions. This potential sale could give the banks significant liquidity, particularly Bradesco, which faces tighter capital conditions.
iFood entered the voucher market in 2020 and now serves approximately 600,000 users. Buying Alelo would swiftly boost this to over 6 million, immediately making iFood Brazil’s top voucher provider.
This move aligns perfectly with iFood’s strategic aim of blending online delivery services with physical restaurant transactions. Prosus, iFood’s controlling shareholder, would finance the acquisition.
Prosus has aggressively expanded in Latin America, recently acquiring major companies like Decolar and Just Eat Takeaway. Buying Alelo supports Prosus’ ambitious plan to double its global revenue by 2028, reaching around $12.5 billion.
Yet, the deal is not without complications. Brazil’s government is considering new regulations, potentially capping transaction fees for meal voucher companies at 3.6%.
Alelo Deal Faces Regulatory Scrutiny Amid Rising Competition
Authorities are also discussing faster merchant payments and limiting intermediaries’ commissions. Such measures could directly affect Alelo’s valuation, making the proposed acquisition price either overly expensive or strategically attractive, depending on regulatory outcomes.
Meanwhile, Brazil’s meal voucher market faces increasing competition. New companies like Flash, Caju, and PicPay have challenged the traditional dominance of Alelo, Pluxee, Ticket, and VR.
These top four currently control around 80% of the industry, valued between R$150 billion and R$200 billion annually. iFood’s potential purchase of Alelo highlights how tech companies increasingly shape everyday consumer finance.
It also demonstrates banks’ willingness to divest from traditional, stable businesses to improve their financial flexibility amid economic uncertainties.
This acquisition would reshape Brazil’s voucher landscape, altering consumer choices, merchant relationships, and financial sector strategies.
Source: The Rio Times
