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 and appetites of food enthusiasts across India. Whether you’re a seasoned chef or a novice in the kitchen, Licious makes it tempting to explore the world of fresh meats and seafood. For those in the pursuit of freshest meats and seafood, Licious is one stop and has become the virtual promised land. But how does this digital deli Licious actually make money? Let’s slice through the details and uncover the juicy secrets of Licious business model.
In the realm of perishables, quality reigns supreme. Licious understands this, and they go to great lengths to maintain it. By sourcing directly from farms and fishermen, they ensure that the products are fresh and top-notch. Customers are willing to pay a premium for this quality, which is a cornerstone of their revenue stream.
Picture this: You’re planning a dinner party and your heart’s desire is a succulent steak or a good fish dish. Instead of rushing to your nearest market, you simply reach your smartphone, place an order with Licious, and within hours, your culinary wishes materialize at your doorstep. It’s almost like having a personal butcher, but with a digital twist. Licious business model combines the convenience of e-commerce with a focus on quality, transparency, and customer satisfaction.
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Licious is a food technology company based in India that specializes in the online delivery of fresh and high-quality meat and seafood. The journey of Licious began in 2015, in the vibrant city of Bengaluru, Karnataka. The brains behind this culinary 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 for Licious was born out of frustration – the kind that often leads to groundbreaking innovations. Abhay and Vivek realized that finding high-quality meat and seafood was an ordeal. 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.
|Founders||Abhay Hanjura and Vivek Gupta|
|Parent company||Delightful Gourmet Pvt. Ltd.|
|Serves in||E-commerce, Food & Beverage|
|Valuation (2023)||Rs. 12,300 crores ($1.5 billion)|
|Revenue (2022)||Rs. 706 crores ($7.06 billion)|
|Funding (2022)||Rs. 48.99 crores ($489.9 million)|
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 to sourcing these products directly from farms, fishermen, and suppliers, ensuring freshness and quality. The company operates through a user-friendly website and mobile app, allowing customers to browse their offerings, place orders, and schedule deliveries with ease.
The company also offer subscription services, enabling customers to receive regular deliveries of their preferred meat cuts. Licious 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.
Here are some key aspects of Licious:
QUALITY AND FRESHNESS: Licious prides itself on providing customers with the freshest and highest-quality meats and seafood. They source their products directly from farms and fishermen, ensuring that what you receive at your doorstep is as fresh as it gets.
WIDE PRODUCT RANGE: Licious offers a wide variety of products, including chicken, mutton, seafood, and even exotic options like quail and duck. They also provide marinated and ready-to-cook options, making it a one-stop-shop for meal solutions.
CONVENIENCE: With an easy-to-navigate website and mobile app, Licious has made ordering fresh meat and seafood incredibly convenient. Customers can place orders with just a few clicks and have their selections delivered to their doorsteps.
SUSTAINABLE PRACTICES: Licious is committed to sustainability and responsible sourcing. They work with suppliers who adhere to ethical and sustainable practices in farming and fishing.
DYNAMIC PRICING: Licious employs dynamic pricing, which means that prices may vary based on the factors like demand and supply. This strategy helps them optimize their profits and manage their supply chain efficiently.
STRONG BRAND IDENTITY: The distinctive pink packaging and a commitment to quality have helped Licious build a strong brand presence in the market. This branding fosters customer loyalty and positive word-of-mouth referrals.
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Licious Business Model
Licious works on a farm-to-folk business model, which means they oversee and manage every step of the supply chain, from sourcing raw materials directly from farms and fishermen to processing, packaging, and delivering the final products to consumers. 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 and fresh meat and seafood. They establish direct relationships with farmers, fishermen, and suppliers to ensure the best products. By cutting out middlemen, they can maintain control over the sourcing process, leading to better quality and traceability.
PROCESSING AND PACKAGING:
Once sourced, the raw materials go through a stringent quality control and processing phase. Licious operates state-of-the-art processing facilities where meats are cleansed, cut, and packaged. Their commitment to hygiene and quality standards is maintained throughout this process.
WIDE PRODUCT RANGE:
Licious offers a diverse range of products to cater to various culinary preferences. From everyday staples like chicken and mutton to premium selections like salmon and prawns, they aim to provide a one-stop-shop for all meat and seafood needs.
Licious operates through a user-friendly website and mobile app. 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.
Direct-to-consumer is the essence of Licious business model. By cutting out intermediaries and selling directly to consumers, they can maintain control over product quality, pricing, and customer experience. This D2C approach allows them to build trust with their customers by ensuring that what is promised is delivered.
Licious introduced subscription plans that allow customers to receive regular deliveries of their preferred meat cuts. This subscription model ensures a steady stream for Licious and provides customers with a hassle-free way to access fresh meat regularly.
Quality assurance is at the core of Licious business model. 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 may collaborate with other brands or restaurants for promotional and marketing purposes. Such partnerships can provide 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.
TECHNOLOGY AND EFFICIENCY: Licious utilizes technology to optimize its supply chain and operations. This efficiency helps reduce operational costs and maximize profitability.
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.
To maintain its competitive edge, Licious continues to innovate, expand its product range, enhance its customer experience, and ensure the quality and freshness of its offerings. The competition in the online meat and seafood delivery market in India remains fierce, driving companies like Licious to constantly improve and meet the evolving demands of consumers.
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. By prioritizing above qualities Licious has disrupted the traditional meat and seafood market and established itself as a leader in the online food delivery industry in India.