Mumbai-based foodtech platform Thrive has shut down its operations, becoming the latest startup to do so. The company’s co-founder and CEO, Krishi Fagwani, made the announcement in a LinkedIn post, citing a lack of resources as the reason behind the decision.
Thrive, a startup founded in 2020 by Krishi Fagwani, Dhruv Dewan, and Karan Chechani, had a team of 42 employees. The company had established partnerships with over 14,000 restaurants across 80 cities, positioning itself as a direct competitor to prominent food delivery platforms Swiggy and Zomato.
Fagwani expressed his sentiments about the shutdown, stating, “Over the years, we’ve fought hard to create a more equitable approach to food delivery and discovery—lower commissions, fairer pricing, social-led discovery, and a human-centered connection between restaurants and their customers. However, scaling that vision required resources we couldn’t secure.”
Thrive’s cofounder shared his insights on the challenges the company faced, stating that the market landscape is characterized by a small number of large, well-funded players. This, he noted, makes it extremely tough for smaller platforms to carve out a niche for themselves.
In light of this, the cofounder revealed that the company is actively working on transferring its key products, including Thrive ONDC, Thrive Direct, and the Thrive Marketing Suite. “We are now working to transition Thrive ONDC, Thrive Direct, and the Thrive Marketing Suite to the right industry partner to ensure continuity for our restaurant partners,” he added.
The cofounder provided reassurance that the transition process will be seamless, with all services, including payment processing and tax compliance, remaining fully operational and uninterrupted throughout the transition period.
Thrive provided restaurants with flexible delivery options, allowing them to either utilize their own staff for order delivery or partner with the startup’s third-party logistics providers. Additionally, the platform offered a self-serve tool that enabled restaurants to create their own sub-portals, facilitating direct online ordering from consumers.
Thrive differentiated itself from competitors Zomato and Swiggy by charging a significantly lower commission of only 3%, compared to the 18-25% levied by its rivals. This attractive pricing model was likely a key factor in attracting investments from prominent industry players.
Notably, Thrive had secured investments from major brands, including a 15% stake acquired by Coca-Cola in 2023, marking the beverage giant’s first investment in an Indian startup. Additionally, Jubilant FoodWorks, the operator of Domino’s India, had picked up a 35% stake in Thrive for approximately ₹25 Cr in 2021. Unfortunately, despite these investments, Thrive has become the latest casualty in the Indian startup ecosystem, joining a list of at least 12 funded startups that have shut down in 2024.
