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Licious Reports Rs 685 Crore Revenue in FY24, Cuts Losses by 44%

Licious, the direct-to-consumer (D2C) meat and seafood brand, has released its financial results for FY24, revealing a revenue of Rs 685 crore. While this marks a 9% decline from the previous fiscal year’s revenue of Rs 746 crore, the company has successfully reduced its losses by 44%, showcasing its commitment to operational efficiency.

Revenue Trends and Challenges

The slight dip in revenue can be attributed to the closure of key distribution channels, including partnerships with Dunzo and Swiggy Meatsore, as well as a strategic shift away from modern trade and local stores.

  • Despite these challenges, Licious continues to serve approximately 1.2 million customers each month through its app, which now accounts for a significant 85% of its business.
  • The company’s flagship program, Infinity, has emerged as a major revenue driver, contributing 58% to its overall earnings.

Licious’s ability to stabilize its revenue around the Rs 700 crore mark over the past two fiscal years reflects its strong market presence in the D2C meat and seafood sector. However, the competitive landscape remains fierce, with rivals such as FreshToHome and Zapfresh vying for market share.

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Cost Control and Operational Adjustments

In a proactive move to enhance profitability, Licious implemented effective cost control measures that led to a substantial reduction in losses. The company reported losses of Rs 294 crore in FY24, down from Rs 524 crore in FY23.

  • This operational reset included a workforce reduction of nearly 3%, affecting around 80 employees, as part of a strategy to sharpen its growth focus.
  • Looking ahead, Licious is optimistic about achieving positive EBITDA in the current fiscal year, indicating a potential turnaround in its financial performance.

To further improve customer experience, Licious has begun piloting 30-minute deliveries in Gurugram, marking a significant step in its transition to a full-stack D2C model. This initiative aims to enhance convenience for customers and streamline the delivery process.

Expansion and Market Position

In a bid to expand its retail footprint, Licious recently acquired Bengaluru-based retailer My Chicken and More, increasing its physical retail locations to 26. This acquisition aligns with the company’s strategy to enhance its market presence and cater to a broader customer base.

  • To date, Licious has raised over $450 million in funding, with Mayfield India holding the largest stake at 14.69%, followed by other notable investors such as Vertex Ventures and Temasek.
  • As the largest player in the D2C meat and seafood sector, Licious faces increasing competition, particularly from new entrants like Zepto, which launched its in-house meat delivery brand, Relish, in October 2023. This new vertical reportedly achieved an annual recurring revenue (ARR) of Rs 150 crore within just six months.

As Licious navigates the evolving landscape of the D2C market, its focus on operational efficiency and customer experience will be crucial in maintaining its leadership position and driving future growth.

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