Licious revenue dips 8 percent in FY24 amid distribution channel closures

Online meat and seafood brand Licious' revenue fell by 8% year-on-year (YoY) to Rs 685.05 crore in the financial year 2023-24. This decline was attributed to the closure of distribution channels like Dunzo and Swiggy Meatstore and a shift in focus towards owned channels. Despite the revenue drop, Licious managed to reduce its losses by 44% to Rs 293.77 crore during the same period.

Licious has recorded a 5% year-over-year increase in app-based sales. Backed by Temasek, Licious aims to attain profitability in the current financial year through a significant expansion of its offline store network.

Currently, 85% of Licious' business is generated through its mobile app, serving approximately 1.2 million customers monthly.

The company’s flagship loyalty programme, Infiniti, now has about 2 lakh weekly active subscribers, contributing to 58 percent of the company's monthly business.

Licious has witnessed a 35% increase in deliveries through quick commerce channels, reflecting the rapid growth of this sector. The company is also piloting 30-minute deliveries in Gurugram as part of its transition to a fully integrated direct-to-consumer model. Additionally, Licious has expanded its physical retail presence by acquiring My Chicken and More, bringing its total retail points of sale to 26.

"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," said co-founders Ajay Hanjura and Vivek Gupta.

Earlier, the company said it is also diversifying its offerings by entering into newer categories like momos and the like, which will also push up average order values (AOVs). In May, Licious had an AOV of around Rs 600, up from Rs 500 from three to four years ago, Gupta told Moneycontrol.

In terms of competition, Licious primarily faces competition from Amazon-backed FreshToHome, which has raised around $290 million.