SUMMARY
- Licious announced that its losses decreased by 44% to Rs 293.77 crore in FY24.
- The company’s revenue dropped by 8.4% to Rs 685.05 crore in FY24.
- Licious stated that 85% of its earnings in FY24 came from its own D2C app.
Meat delivery startup Licious announced that its losses decreased by 44% to Rs 293.77 crore in FY24 from Rs 528.5 Cr in FY23.
However, the company’s revenue dropped by 8.4% to Rs 685.05 crore from Rs 748 crore in the same period.
Bengaluru-based D2C startup Licious, makes money by selling meat, seafood, cold cuts, and ready-to-eat meat products online.
In a press release, the company explained that the drop in income was due to the closure of sales on platforms like Dunzo and Swiggy Meatstore, as well as a decrease in its presence in modern trade and local stores.
The company noted that this decline was partially offset by a 35% increase in quick commerce deliveries. Due to the high demand for fast deliveries, Licious is currently testing 30-minute meat delivery services in Gurugram as it moves towards a comprehensive D2C business model.
Moreover, Licious stated that 85% of its earnings in FY24 came from its own D2C app, which delivers to 1.2 million customers monthly.
Additionally, the company is planning a significant expansion of its offline stores. Recently, Licious acquired a Bengaluru-based physical retail store chain, My Chicken and More, which added 26 more retail locations to its network. Although the financial details of the acquisition were not disclosed, the company mentioned that this move will help it open 23 more stores and grow its physical presence.
With its focus on expanding its physical stores, Licious is anticipating EBITDA breakeven or even becoming profitable in the current fiscal year.
Licious’s cofounders, Ajay Hanjura and Vivek Gupta, stated in their statement, “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.”
The D2C startup’s EBITDA margin was -58.9% in the year under review.
Notably, Licious laid off around 80 employees in FY24 as part of a restructuring effort.
