Foodtech Startup Thrive Shuts Down Amid Resource Crunch

Foodtech startup Thrive has announced the closure of its operations due to resource constraints, confirmed cofounder and CEO Krishi Fagwani. 

In a LinkedIn post, Fagwani shared that the platform struggled to scale its vision of equitable food delivery and discovery, citing market dominance by large, well-funded competitors as a key challenge.

Thrive, launched in 2020 by Krishi Fagwani, Dhruv Dewan, and Karan Chechani, had onboarded over 14,000 restaurants across 80 cities. 

The platform aimed to provide lower commissions (3% versus 18-25% by rivals Swiggy and Zomato), self-serve tools for restaurant sub-portals and alternative delivery options through either restaurant staff or third-party logistics. 

It also emphasized fairer pricing and a human-centric connection between eateries and customers.

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To ensure continuity for restaurant partners, Thrive is working on transitioning its ONDC integration, direct order services, and marketing tools to a suitable industry partner. Fagwani assured stakeholders that services, including payments and tax compliance, will remain unaffected during this process.

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In recent years, Thrive attracted notable investments, including a 15% stake acquisition by Coca-Cola in 2023 and a 35% stake purchase by Jubilant FoodWorks (operator of Domino’s India) for INR 25 Cr in 2021.

The startup, which employed 42 people, now joins the list of over a dozen funded startups that have ceased operations in 2024.

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