D2C meat and seafood brand Licious reports Rs 685 crore revenue in FY24, losses decline by 44%

Bengaluru-based Licious, a direct-to-consumer (D2C) meat and seafood brand, reported an 8% year-on-year decline in revenue for the financial year 2023-24 (FY24), amounting to Rs 685.05 crore.

The drop is largely attributed to the closure of third-party distribution channels such as Dunzo and Swiggy Meatstore. 

The startup also reduced its focus on modern trade and local stores, shifting attention towards its own platform, leading to a reconfiguration of its distribution strategy.

Significant reduction in losses

Despite the revenue decline, Licious managed to cut its losses significantly by 44%, bringing the deficit down to Rs 293.77 crore in FY24. In the previous financial year (FY23), the startup's losses stood at Rs 524 crore.

The reduction in losses was achieved through strategic cost control measures and an operational shift towards enhancing platform-driven sales. This aligns with the company’s ongoing efforts to reach profitability.

Strategic shift to owned channels and quick commerce

Licious has increasingly focused on its direct-to-consumer model, with its app now accounting for 85% of its total business. The brand serves nearly 1.2 million customers monthly through this platform.

To support this shift, Licious also emphasized quick commerce, which grew by 35% year-on-year, enhancing delivery efficiency.

It is currently piloting 30-minute delivery services in Gurugram to improve customer experience further and strengthen its full-stack distribution model.

Expansion of offline retail network

To bolster its omnichannel presence, Licious acquired Bengaluru-based offline retailer My Chicken and More, bringing its total retail points of sale to 26 locations.

This acquisition is part of the brand’s strategy to expand its physical retail footprint, targeting 500 offline stores in the coming years. The move aims to diversify its customer base and enhance its reach across key markets, aligning with its goal to turn profitable by FY25.

Future plans and competitive landscape

Licious continues to invest in building a comprehensive omnichannel network, intending to balance online and offline sales.

“During the pandemic fuelled surge in online consumption, we focused on scaling supply and cold chains to unprecedented levels in India, which we have accomplished. We are now focused on building a full-stack distribution operation through an omnichannel strategy. Last year has been a transition, with short-term impacts from strategic adjustments. However, we expect to see the positive results of these choices by the end of FY25,” Licious co-founders Ajay Hanjura and Vivek Gupta said.