Licious Acquires Bengaluru's My Chicken And More

Licious Says FY24 Loss Down 44% YoY To INR 294 Cr

SUMMARY

Licious is acquiring My Chicken and More, adding 23 stores to its network, enhancing its physical presence alongside its digital platform that serves 4 million households.

The acquisition marks a rapid expansion from just four stores at the start of the year to a target of 40 by the fiscal year-end.

This strategic move significantly accelerates Licious' plans to integrate its online and offline sales channels, aiming for a more comprehensive market reach.

D2C foodtech unicorn Licious, which counts Temasek, 3One4 Capital and IIFL among its marquee investors, has bought Bengaluru-based offline retailer My Chicken and More in a cash and equity deal.

While the company did not disclose the financial terms of the transactions but said that the buyout will help it add 23 more stores to its network and expand offline footprint.

The deal will also see My Chicken and More’s founder S Mahesha joining the Licious team for at least four years.

Vivek Gupta and Abhay Hanjura, co-founders of Licious, said, “My Chicken and More has achieved impressive revenue per store, profitability, and supply chain efficiency, making it a well-run operation. We see great value in their operations, customer-centric approach, and strong brand loyalty, which align perfectly with Licious’s vision.”

My Chicken and More founded in 2007 by S Mahesha currently operates 23 stores across Bengaluru, generating annual revenues of approximately INR 110 Cr. The company processes between 1.6 Mn and 1.8 Mn orders annually, with some stores attracting an average monthly footfall of 10,000 to 12,000 customers.

Mahesha said, “Partnering with Licious is not just about growth for us; it’s about aligning with a shared vision of providing consumers with high-quality, hygienic meat.”

This acquisition is expected to boost Licious’ sales in Bengaluru from INR 250 Cr to INR 400 Cr. It aligns with Licious’ ambitious plan to open 500 offline stores in key markets over the next few years, significantly expanding its omnichannel presence.

Founded in 2015 by Abhay Hanjura and Vivek Gupta, Licious has worked on the fragmented and unorganised meat industry in India.

The company currently serves 20 cities through 100 delivery centres and operates five state-of-the-art processing centres. Licious reported an Annual Revenue Run Rate (ARR) of approximately INR 800 Cr ($100 Mn) as of October 2024.

The D2C unicorn has raised about $490 Mn to date and was last valued at $1.5 Bn in March 2023. Despite facing challenges, Licious has undergone significant restructuring.

In February, the company laid off around 80 employees, or 3% of its total 3,000 workforce, across several verticals. Prior to this, Licious had about 650 corporate staff and 2,400 people in production and supply chain functions.