The omnichannel meat retailer, Licious, witnessed a notable reduction in its losses for the financial year concluding on 31 March 2023, marking a decrease of approximately 38 per cent to Rs 528.6 crore compared to Rs 855.7 crore the previous year. Concurrently, the company experienced a growth in revenues by 9.5 per cent, reaching Rs 747.8 crore from Rs 682.6 crore on a consolidated basis, according to recent financial statements.
In September of the preceding year, Licious had reportedly forecasted that its FY23 revenues would reach Rs 1,500 crore, nearly double the figures reported a year earlier. This projection came around six months after securing USD 150 million in a funding round led by Singapore-based Amansa Capital, with participation from existing investors such as Temasek and 3One4 Capital. The fundraising round had valued the company at well over USD 1 billion, according to data from Tracxn.
Total expenses for Licious in FY23 amounted to Rs 1,309.3 crore, reflecting an increase from the Rs 1,191.5 crore spent in the preceding year. Noteworthy expenses included the cost of materials consumed, mainly comprising the purchase of meat and fish products, which totaled Rs 644.7 crore, compared to Rs 554.3 crore in FY22. Employee benefit expenses constituted another significant expenditure, totaling Rs 239 crore.
In response to the seasonal nature of the meat business and the cultural tendency for reduced meat consumption during festivals, Licious has been actively diversifying its product range, including the introduction of a line of ready-to-eat products. Additionally, the company ventured into the plant-based meat market with its own brand, UnCrave, introduced late last year.
Despite challenges in the online meat market, exemplified by food delivery giant Swiggy closing its meat marketplace in January, Licious continues to thrive by adapting to market dynamics. Licious is hosted on Swiggy’s Instamart platform. Moreover, in February, one of Licious’s competitors, FreshToHome, secured USD 104 million in funding in a round led by Amazon Smbhav Venture Fund.
