Prosus' Transformation Under CEO Bloisi: A Catalyst for Ecommerce Dominance

Prosus, the global internet holding company, has undergone a remarkable transformation under CEO Fabricio Bloisi, shifting from a passive investor to an active operator in high-growth e-commerce markets. With a record-breaking fiscal year 2025, the company has turned its once-struggling e-commerce division into a profit engine, driven by operational efficiencies, strategic AI investments, and ecosystem synergies. This shift has positioned Prosus as a compelling investment opportunity, offering a rare combination of profitability acceleration, disciplined capital allocation, and undervaluation relative to peers.

Profitability and Financial Turnaround: From Loss to Profit Engine

Prosus' e-commerce division, which once bled cash, now stands as its most dynamic growth driver. In FY2025, e-commerce profits surged to $435 million, a staggering 1,086% increase from $38 million in FY2024. This transformation is fueled by subsidiaries like OLX, iFood, and Swiggy, which have delivered exceptional results:
- OLX grew revenue by 26% to $951 million in FY2024, with adjusted EBIT jumping over 100% to $187 million, further rising to $270 million in FY2025.
- iFood's EBIT more than doubled to $200 million, leveraging AI-driven logistics to solidify its dominance in Brazil.
- Swiggy, India's leading food delivery platform, is on track to hit 100 million monthly orders, with an IPO planned to unlock value.

The turnaround was accelerated by a management overhaul that aligned regional leaders' incentives with growth targets, streamlining decision-making and boosting execution speed.

AI-Driven Innovation: The Engine of Efficiency and Growth

Bloisi's strategy hinges on AI integration across operations, which has already delivered tangible results. At iFood, AI algorithms optimize delivery routes and demand forecasting, reducing costs while improving customer satisfaction. Similarly, OLX uses AI to enhance user experience through personalized recommendations and fraud detection.

The payoff is clear: AI initiatives are now core to Prosus' ability to scale profitably. As Bloisi noted, “AI isn't just a tool—it's the backbone of our future competitiveness.”

Ecosystem Synergies: Building a Global Ecommerce Powerhouse

Prosus' acquisitions have created a synergistic ecosystem, enabling cross-selling opportunities and operational harmonization. The $4.1 billion acquisition of Just Eat Takeaway.com in 2023, for instance, combined with iFood's AI tools, aims to dominate European and Latin American food delivery markets. Similarly, the takeover of Despegar in Latin America has strengthened Prosus' travel platform, which now integrates with iFood and OLX for seamless customer experiences.

The true power of this ecosystem lies in its network effects: as one subsidiary grows, it fuels demand across others. For example, Swiggy's dominance in India's food delivery market creates a testing ground for AI-driven innovations that can be replicated globally.

Capital Allocation and Shareholder Returns: A Focus on Value Creation

Prosus has masterfully deployed capital to drive returns for shareholders. By selling $33 billion of its Tencent stake over 18 months, it funded a $36 billion buyback program, reducing its free float by 25% and narrowing its NAV discount to 20%. With $18 billion in cash reserves, the company is primed for strategic acquisitions and further buybacks.

Shareholders are also benefiting from a proposed 43% dividend increase for free-float investors. Meanwhile, upcoming IPOs—such as PayU ($1.3 billion valuation) and Swiggy—promise to unlock additional value, making these milestones critical near-term catalysts.

Risks and Challenges: Navigating Emerging Markets

Despite its strengths, Prosus faces risks inherent to emerging markets. Geopolitical tensions (e.g., U.S.-China disputes impacting Tencent) and regulatory hurdles in India and Brazil could disrupt growth. Integration challenges with Just Eat Takeaway and Despegar also pose execution risks. However, Prosus mitigates these by maintaining a diversified portfolio and a focus on operational profitability.

Investment Thesis: A High-Growth Play at a Discount

Prosus trades at a P/E of 18x, significantly below peers, even as its FY2025 e-commerce profits signal sustainable growth. With a potential $100+ upside within 12–18 months—driven by PayU's IPO, regulatory clarity on Tencent, and continued buybacks—the stock offers an attractive risk-reward profile.

Recommendation: Prosus is a must-watch for investors seeking exposure to global e-commerce growth. While risks exist, the combination of profitability, AI-driven innovation, and shareholder-friendly policies makes it a compelling long-term hold.

In a world where e-commerce continues to redefine consumer behavior, Prosus' transformation under Bloisi isn't just a turnaround—it's a blueprint for dominance.