Licious Business Model – How Does Licious Make Money?

In a world driven by convenience, where culinary adventures often begin with a few clicks, Licious has redefined the way we experience food. This online meat and seafood platform has captured the hearts of food enthusiasts across India. Let’s discuss how the secretes behind Licious business model.

Note: We have a full information write-up on Licious Valuation, Shareholders & Funding! Do visit that.

Licious Profile

Licious began in 2015, in the vibrant city of Bengaluru, Karnataka. The brains behind this revolution were Abhay Hanjura and Vivek Gupta. Two enterprising individuals who shared a common passion for good food and a burning desire to address the challenges they faced as consumers of fresh meat and seafood. 

The idea behind Licious was born out of frustration, i.e. Abhay and Vivek realized that finding high-quality meat and seafood has become a difficult task. Traditional meat shops didn’t always meet hygiene standards, and the modern-day consumer was left longing for a trustworthy source for their culinary experiments.

Some key features:

Licious works on a Farm-to-Fork model, and is India’s first D2C (Direct-to-Consumers) unicorn. 

Licious offers a wide range of products, including various cuts of chicken, mutton, seafood (like fish, prawns, and crabs), and even exotic options such as quail and duck. They are known for their commitment of sourcing these products directly from farms, fishermen, and also the suppliers, ensuring freshness and premium quality. 

The company operates through a user-friendly website and an mobile app, allowing customers to browse their offerings, place orders, and schedule deliveries with ease.

Licious currently operates in 28 cities of India- including Bengaluru, Hyderabad, Gurugram, Delhi, Faridabad, Noida, Mumbai, Pune, Chennai, Chandigarh, Jaipur, Coimbatore, Kochi, Visakhapatnam, Vijayawada, Pondicherry, and Kolkata. 

In 2021, Licious became the first D2C startup to enter the unicorn club in the world’s second largest internet market by raising a $52 million in the funding round. 

Note: We do have a detailed write-up on Licious Revenue Hit!   Do visit it for more information.

Licious Business Model

Licious works on a farm-to-folk business model. This model helps Licious to earn through a 30%-40% of margin. 

Here’s an overview of Licious farm-to-fork business model and its direct-to-consumer (D2C) service: 

SOURCING AND QUALITY CONTROLS:

Licious places a strong emphasis on sourcing high-quality of fresh meat and seafood. They establish direct relationships with farmers, fishermen, and suppliers to ensure the best products. By cutting out the middlemen, they maintain and control over the sourcing process, leading to better quality, 

WIDE PRODUCT RANGE:

Licious offers a diverse range of products, that ranges from chicken and mutton to premium selections like salmon and prawns, they aim to provide a one-stop-shop for all meat and seafood needs.

E-COMMERCE PLATFORM:

Licious operates through a website and an mobile app, through which customers can easily browse the product catalog, place orders, and schedule deliveries. The digital platform is designed to provide a seamless shopping experience and ensure convenience for consumers. 

D2C SERVICE:

Direct-to-consumer is the essence of Licious business model. By cutting out intermediaries and selling directly to consumers, they maintain control over product quality, pricing, and customer experience.

SUBSCRIPTION SERVICE:

Licious has also introduced subscription plans that allow customers to receive regular deliveries of their preferred food choice. This subscription model ensures a steady stream for Licious and provides customers with a hassle-free way to access fresh meat regularly.

QUALITY ASSURANCE:

They maintain strict quality standards, and their products are packed in distinctive pink packaging to signify their commitment to freshness and quality. 

EXPANSION AND GROWTH:

Licious has expanded its operations to multiple cities across India, gradually increasing its reach and customer base. The company expansion includes not only geographic growth but also the introduction of region-specific products to cater to local tastes.

How does Licious earn money?

Licious, as an online meat and seafood delivery platform earns money through various revenue streams. Here are the primary ways Licious generates revenue- 

DELIVERY CHARGES: Licious may apply delivery charges for orders, depending on the location and order value. These charges help offset the costs associated with delivering products to customers. 

ADVERTISEMENT: Licious may allow other brands to promote themselves on their platform and can generate revenue from them. 

BRAND PARTNERSHIPS: Licious collaborates with other brands or restaurants for promotional and marketing purposes. Such partnerships provides additional revenue streams through shared marketing efforts or co-branded products.

VALUE-ADDED PRODUCTS: In addition to fresh meat and seafood, Licious offers value-added products like marinated meats and ready-to-cook options. These premium products often come with higher price points, contributing to increased revenue. 

Licious Competitors 

Licious operates in a competitive market, and it faces competition from several players in the online meat and seafood delivery industry in India. Some of its notable competitors are:

FreshToHome: FreshToHome is another prominent player in the online fresh meat and seafood delivery space. They focus on sourcing chemical-free and antibiotic-free products, appealing to health-conscious consumers.

Zappfresh: Zappfresh is known for delivering fresh, chemical-free meat and seafood. They compete with Licious by offering a range of products and focusing on quality.

TenderCuts: Is an online meat and seafood delivery service that operates in selected cities in India. They offer a range of fresh and frozen products to customers.

BigBasket: BigBasket is a major e-grocery platform in India that offers a wide range of products, including fresh meat and seafood. They compete with Licious by providing convenience and a variety of options to customers.

LOCAL BUTCHERS AND SUPERMARKETS: Traditional local butchers and supermarkets also compete with Licious, especially in neighborhoods where consumers prefer to purchase meat and seafood in person.

Wind-Up 

In essence, Licious business model revolves around offering convenience, quality, and a diverse product range to its customers. By optimizing its supply chain, embracing technology, and fostering customer loyalty. Licious has successfully turned its passion for fresh, high-quality meat and seafood into a profitable and scalable business.