Prosus' iFood in advanced talks to buy Brazil's Alelo for $905 million, Valor Economico reports

SAO PAULO, July 23 (Reuters) - Brazilian food delivery app iFood, owned by Dutch technology investor Prosus PRX.AS, is in advanced talks to buy meal voucher company Alelo for about 5 billion reais ($904.75 million), the Valor Economico newspaper reported on Wednesday, citing sources.

The deal would be expected to turn iFood, which holds a dominant position in Brazil's online food delivery market, into a leader in the local food voucher segment in which it already operates, Valor said.

iFood declined to comment. Alelo did not immediately respond to a request for comment.

Alelo, which is backed by Brazilian lenders Banco do Brasil BBAS3.SA and Bradesco BBDC4.SA, is one of Brazil's largest providers of meal and food vouchers. It reported 1.9 billion reais ($344.10 million) in net operating revenue last year.

Alelo, whose customers are companies that offer meal and food vouchers to their employees, is one of four firms that together control roughly 85% of Brazil's meal vouchers market.

The company's main rivals are Ticket, which is owned by Edenred EDEN.PA, Sodexo, owned by Pluxee PLX.PA, and privately held VR.

iFood is part of the Latin American portfolio of Prosus, an investor that is majority-owned by South Africa's Naspers NPNJn.J. The Brazilian delivery app had $1.3 billion in revenue through the year ended in March 2025.

($1 = 5.5217 reais)