Coca-Cola & Domino’s-backed food delivery startup loses battle to Zomato & Swiggy; closes the consumer application
Mumbai-based food delivery startup Thrive has announced the closure of its customer service after four years of operation. The decision comes amid intense competition in the food tech sector, led by industry giants Zomato and Swiggy, which continue to dominate with deep funding and innovation.
A Tough Call in Tough Times
Thrive’s founder, Krishi Phagwani, shared the news on LinkedIn, calling it a “tough decision” for the company. Despite the closure, some of Thrive’s direct businesses, including Thrive ONDC, Thrive Direct and Thrive Marketing Suite, will be offered to appropriate industry partners to continue.
Phagwani assured participants that payments, tax compliance, reporting, and invoicing will be handled flawlessly during the transition. Expressing his gratitude, he wrote:
“We are proud of what we have built together and thank our restaurant partners, customers, investors and team for believing in our mission.”
Great Players Are Backed and Succeeded
Thrive has been able to secure significant funding from major corporations. In 2021, Jubilant Foodworks, the parent company of Domino’s and Popeyes, acquired a 35% stake initially. After this, Coca-Cola invested in Thrive by taking a 15% stake in 2023.
The Behemoth of Combat Industries
Development has faced increasing challenges as prominent players like Zomato and Swiggy strengthen their foothold in the market, especially after the changes driven by the pandemic. Both companies expanded their portfolios by entering the fast-moving business segment and embraced strategic acquisitions.
Phagwani acknowledged the uphill battle, saying:
“The market is dominated by large, well-funded giants, making it very difficult for smaller, machine-driven platforms to scale and address restaurant needs effectively.”
Thrive Numbers and Challenges
According to Tracxn data, Thrive has raised a total of $2.5 million in equity funding in three rounds. However, the company’s financial performance revealed growing difficulties. In FY23, revenue slightly increased to Rs 2.5 crore from Rs 2.3 crore in FY22, but net loss widened significantly, jumping from Rs 2.8 crore to Rs 7.4 crore.
The decision to shut down the consumer app marks the growing challenges faced by smaller players in a market dominated by big-name giants with huge resources. At Thrive, this chapter is ending as we move into a new phase of strategic partnerships and operational shifts.
