By Brazil Stock Guide – Brazil’s leading food delivery platform iFood announced on Wednesday (12) the acquisition of Advolve, a Brazilian artificial intelligence startup focused on performance marketing.
The purchase marks a major step in iFood’s plan to scale its advertising arm, aiming to increase its ad revenue fivefold by 2030. The move comes as the company builds its retail media strategy, under the leadership of Sam James, newly appointed vice president of iFood Ads, and Ana Paula Duarte, senior director.
Advolve, which already counted Prosus Ventures (AMS: PRX) — iFood’s controlling shareholder — as an investor since February, was the company’s first major partner for growth and media projects. Duarte said the acquisition will improve efficiency and content creation through AI. “The deal will enhance media effectiveness and extend audience reach beyond the app, with more accurate targeting and stronger conversion rates,” she said.
Pre-acquisition tests showed a fourfold increase in return on ad spend (ROAS) for both iFood and participating brands. The strategy also aims to attract non-endemic advertisers who do not sell within the app but want to connect with iFood’s qualified audience. “We’re positioning ourselves not just as a media channel, but as a strategic business partner,” Duarte added.
Currently, iFood Ads serves more than 230 advertisers across categories including restaurants, supermarkets, pharmacies, and pet shops, with notable growth in beverages and convenience. “Our role is to provide a complete menu of solutions and guide advertisers through the learning journey toward maturity,” Duarte said.
Advolve founder João Sobreira emphasized that the acquisition will help expand iFood’s advertising ecosystem. “A key goal is to attract non-endemic clients, even those outside the app, by leveraging our audience and consumption data,” he said. Sobreira also highlighted AI’s role in scaling operations: “We use AI to help partners grow without heavily expanding teams, allowing them to focus on strategy — where real business value lies.”
Recently, iFood also created a dedicated team for agency partnerships, hiring professionals from the advertising sector to strengthen collaboration, certifications, and pilot programs. The company plans to select agencies as strategic partners to co-develop solutions tailored to iFood’s ecosystem.
One of iFood’s most notable ad cases was The Streaming Bar, a collaboration with Netflix (NASDAQ: NFLX) and Heineken (AMS: HEIA), developed by LePub São Paulo, which won a Gold Lion at Cannes Lions 2024 in the Media category.
Duarte said iFood Ads aims to compete not only within the food delivery market but across Brazil’s entire media landscape. “iFood Ads wants to position itself as a leading media platform for advertisers,” she concluded.
Leave a Reply