Licious: Pioneering the Online Meat and Seafood Market in India
In the ever-evolving landscape of India’s e-commerce sector, Licious stands out as a trailblazer in the online meat and seafood market. Backed by Temasek Holdings Pte, this Bengaluru-based company is on a mission to become profitable while preparing for an Initial Public Offering (IPO) slated for 2026. As consumer-facing firms increasingly eye the public markets, Licious is positioning itself to capitalize on the growing demand for quality meat and seafood in India.
Aiming for Profitability
Delightful Gourmet Pvt., the parent company of Licious, is taking significant steps to ensure profitability. CEO and co-founder Vivek Gupta has announced ambitious plans to achieve a positive EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) by August. This financial milestone is crucial as the company gears up for its IPO, with a target valuation exceeding $2 billion. In its last funding round in 2023, Licious was valued at $1.5 billion, with notable investors including Avendus Capital Pvt. and Kotak Investment Advisors.
Gupta has expressed a clear vision: “We want to be an IPO-ready company in 12 months.” This commitment reflects the growing trend of consumer-focused companies in India seeking to tap into the lucrative public markets, especially following a record year in 2024 when local firms raised over $20 billion through IPOs.
Expanding Physical Presence
To enhance its market presence, Licious is not only focusing on online sales but also expanding its brick-and-mortar footprint. The company plans to open more physical stores, aiming to have 50 locations by March 2026, up from just three currently. This strategy targets traditional meat consumers who prefer selecting their own cuts, thereby bridging the gap between online and offline shopping experiences.
Licious is also acquiring smaller offline stores, such as its recent purchase of Bengaluru-based My Chicken and More, which operates 22 outlets. This expansion is not just about increasing sales; it serves as a marketing strategy to familiarize consumers with Licious products in the offline world, encouraging them to transition to online purchases.
Catering to a Growing Market
With nearly three-quarters of India’s 1.4 billion population consuming fish, chicken, or meat—primarily from local mom-and-pop retailers—Licious is strategically positioned to tap into this vast market. The Indian fish and seafood market boasts an estimated annual revenue of $59 billion, while the meat market is valued at $26 billion, according to Statista.
Licious offers a diverse range of products, including various cuts of chicken, goat meat, fish, and seafood, along with spice mixes, spreads, and ready-to-eat items. The company is also innovating its product line by introducing ready-to-cook marinated items and popular dishes like momos, catering to the evolving tastes of Indian consumers.
Competing in a Crowded Space
Despite its growth, Licious faces challenges in a competitive landscape. The company has experienced a slowdown in sales growth compared to the pandemic highs, grappling with broader consumption slack in urban centers and a slower adoption of online meat purchasing in smaller cities. Competitors like Zepto, with its in-house meat brand Relish, and Amazon-backed FreshtoHome are also vying for a larger share of this burgeoning market.
To maintain its competitive edge, Licious is enhancing its delivery capabilities. Currently promising an average delivery time of 90 minutes, the company is working towards achieving 30-minute deliveries to keep pace with quick commerce rivals like Zomato and Swiggy. Quick delivery services have already been initiated in Gurugram, with plans to expand to other markets by June.
Conclusion
As Licious prepares for its IPO and aims for profitability, it is clear that the company is not just a player in the online meat and seafood market but a pioneer shaping the future of food retail in India. With strategic expansions, innovative product offerings, and a commitment to customer satisfaction, Licious is poised to capitalize on the growing demand for quality meat and seafood in a rapidly changing consumer landscape. As the company moves forward, it will be fascinating to see how it navigates the challenges and opportunities that lie ahead in its journey toward becoming a publicly listed entity.