iFood Acquires Advolve to Boost Its AI-Powered Ads Strategy in 2025

iFood has taken another strategic step in expanding its advertising business with the acquisition of Advolve, a Brazilian company that applies artificial intelligence to enhance performance marketing. The move aims to accelerate the growth of iFood’s Ads division, with the company projecting to multiply the vertical’s expansion fivefold by 2030.

AI-powered platform to boost iFood’s ad solutions

Advolve created an automated platform that uses AI models to develop, test and optimize advertising creatives across formats such as text, images and video. The system evaluates performance in real time and reallocates budgets based on which pieces deliver better results.

This technology will be integrated into iFood’s internal Ads offerings, enabling more advanced audience segmentation, real-time metrics and the ability to scale campaigns beyond the app. With more than 60 million monthly users across 1,500 cities, iFood aims to strengthen its position as a major digital media channel.

The acquisition also reinforces the company’s focus on a closed-loop measurement model, which tracks campaign impact from exposure to actual conversions inside the platform.

A growing Ads division with strong market results

Since its launch in 2021, the iFood Ads vertical has provided brands with access to consumers showing high purchase intent. Over 230 companies from industries including food, retail, pharmacy, and pet care have already used the service. According to internal data, advertisers recorded an average 40% increase in revenue after running campaigns on the app.

The model has gained international attention. A 2025 report by eMarketer ranked iFood as the fastest-growing media revenue company in the world in 2024, with a 462% surge.

For Sam James, iFood’s VP of Ads, the integration of Advolve strengthens the company’s technological capabilities:“The startup brings an AI platform that optimizes the entire campaign journey. Both organizations share a data-driven mindset, which reinforces iFood’s expansion strategy,” he noted.

Advolve founders remain and will develop new solutions

Advolve’s founders, João Sobreira, João Paulo Martins and Djary Veiga, will continue leading the operation, alongside the full team. The company will keep serving external clients while also developing new technologies for the iFood ecosystem and for consumer goods industries.

The integration will allow experiments with campaigns outside the iFood app, widening the reach of AI-driven advertising solutions.

The acquisition comes after Prosus Ventures, iFood’s controlling investor, injected capital into Advolve earlier this year. After joint pilot projects delivered sales returns equivalent to four times the investment, iFood decided to proceed with the full acquisition.

According to Sobreira, the combined capabilities elevate the platform’s media potential:“The combination of technology and audience creates a strong structure to connect brands and users across multiple consumption moments,” he said, emphasizing the app’s presence in food, pharmacy and convenience operations.

Retail media expansion accelerates in Latin America

The move aligns with a global surge in retail media, the model in which retail platforms become high-intent digital advertising channels. Forrester estimates that worldwide investments in the sector will surpass US$300 billion by 2030. In Latin America, spending is expected to more than double, reaching US$5 billion by the end of the decade.

Growth is fueled by the strategic use of first-party data and the ability to reach consumers at the exact moment when purchase decisions are made.