Brazil is among the top 10 countries that waste the most food in the world, according to the UN (United Nations) ranking. 46 million tons of food are thrown away each year, according to research by IBGE (Brazilian Institute of Geography and Statistics).
With an eye on these numbers and aiming to create a sustainable business that combats food waste and also generates profit, entrepreneur Jeff Alves with over 30 years in the technology field, created ifefo (ifefo.com.br). The startup connects large industries with retail (from large to medium-sized retailers) to negotiate competitive prices and offer to the end consumer.
Last year, ifefo earned R$ 280 million and since January, the company has been seeing a 30% month-over-month growth. The forecast is that revenue in 2024 will range between R$ 330 and R$ 380 million. “We see the industry’s inventory, offer it to retail, which buys the products online and receives them anywhere in the country,” says Jeff Alves.
Among the major companies that make up ifefo’s marketplace are: Kellanova, Danone, Nestlé, Minalba, Unilever, Vapza, Mars, Sferriê, Unibaby, Carolina, Goldko, D’Gosto, The Bulldog Energy Drink, and Grupo Bimbo.
The latter, indeed, partnered with the company for the exclusive online distribution of the Takis product line, which includes the globally famous hot chilli tortillas, xplosion (very spicy), and fuego (extremely spicy). Success in thirty countries, the snack has already shown signs of success and has been well-received by the audience that consumes this type of food.
The entrepreneur says there are more than 10,000 items from top brands that can be purchased on the iFefo platform or website with up to 70% off. The attractive prices obtained from partner industries come from products that are close to expiration date. However, the company has grown and now also offers products within their valid period.
It is worth noting that these expired products would have been incinerated or discarded by the industry before iFefo connected the two ends. “If the retailer does not agree with the price being charged, they can still make a counter offer that will be analyzed by our artificial intelligence. After negotiation, they will receive the product at their address.”
From 2019 until now, there are over 200,000 CNPJs registered in operations across more than 4,000 cities. “At iFefo, every product deserves a second chance…” says Jeff. Over 150 tons are reallocated weekly between advanced and initial validations, including non-standard and discontinued products.
iFefo’s artificial intelligence suggests product combinations and personalized prices for each type of customer with 92% accuracy and a 96% return rate to the platform.
Next steps
Inspired by Muhammad Yunus, 83, who won the Nobel Peace Prize in 2006 for creating the “bank for the poor,” a microcredit system responsible for lifting millions of people out of poverty, Jeff’s next step is to expand iFefo’s presence and also transform it into a bank.
“iFefo will become a bank that will provide services such as loans, bill payments, and other services that traditional and digital banks offer.”
Still in 2024, ifefo plans to offer other benefits to retailers. Among them, life insurance, health plan, and discounts at gyms.
“We are in negotiations with some sectors and soon this will allow us to broaden our scope. Our expectation is that in the coming years, ifefo will be the largest ecosystem of AI-driven services for retail in Latin America,” Jeff concludes.
