Thrive Exits Food Delivery Market as Competition Heats Up Thrive had attracted notable investors, including Jubilant Foodworks, which acquired a 35% stake in 2021, and Coca-Cola, which bought a 15% stake in 2023.
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Mumbai-based food delivery startup Thrive is shutting down operations of its consumer app after four years, citing the challenges of competing with heavily funded players in the food tech industry.
Thrive's Co-founder, Krishi Fagwani, announced the decision on LinkedIn, calling it a "difficult choice." The app, which operated primarily in Mumbai, will cease operations, while other business verticals—Thrive ONDC, Thrive Direct, and the Thrive Marketing Suite—are being transitioned to suitable industry partners.
In his heartfelt post, Fagwani expressed gratitude to Thrive's restaurant partners, customers, investors, and team. "It has been an honour to serve this mission together, and I remain immensely proud of what we've built," he wrote.
Launched in 2019, Thrive positioned itself as a mission-driven alternative to larger platforms like Zomato and Swiggy, promoting direct partnerships with restaurants. However, intense competition from these market leaders—who bolstered their businesses through strategic acquisitions and quick commerce offerings—proved challenging.
Thrive had attracted notable investors, including Jubilant Foodworks, which acquired a 35% stake in 2021, and Coca-Cola, which bought a 15% stake in 2023. Despite these backing efforts, Thrive struggled to achieve scale.
In FY23, Thrive reported a modest revenue increase to INR 2.5 crore, up from INR 2.3 crore in FY22, but its net losses widened significantly to INR 7.4 crore from INR 2.8 crore the previous year.
Fagwani acknowledged the uphill battle smaller platforms face in an industry dominated by "well-funded giants," making it difficult to thrive at the scale restaurants deserve.
As Thrive's consumer app signs off, the company ensures that all payments, tax compliances, and invoicing processes remain uninterrupted. The food tech industry remains a tough playing field, with smaller players finding it increasingly difficult to carve out space in a competitive and capital-intensive market.
