D2C Unicorn Licious Fires 80 Employees In A Restructuring Exercise

Bengaluru-based D2C foodtech unicorn Licious, which counts Temasek, 3One4 Capital and IIFL among its marquee investors, has sacked around 80 employees, or 3% of its total 3,000 workforce, across several verticals as part of the company’s restructuring exercise.

Prior to the restructuring, Licious comprised around 650 corporate staff and 2,400 people across production and supply chain functions.

Confirming the development to Inc42, a Licious spokesperson said, “We as a brand, see significant scope in expanding the number of targeted households to further fuel the consumer transition from traditional markets to contemporary purchase formats. We are reprioritising our cost outlays, considering the new growth levers. In doing this, it is unfortunate that we have to separate with some employees who have been a part of our journey.” 

Founded in 2015 by Abhay Hanjura and Vivek Gupta, Licious earns revenue through selling meat, seafood, cold-cuts, and ready-to-eat meat items. 

The startup witnessed an increase of 9.5% in its operating revenue to INR 748 Cr in the financial year 2022-23 (FY23) from INR 682.5 Cr in the previous fiscal year.

Including other income, Licious reported a total income of INR 808.8 Cr in FY23 as against INR 706.1 Cr in the previous fiscal year. 

Meanwhile, the startup managed to decrease its net loss by over 38% to INR 528.5 Cr in FY23 from INR 855.6 Cr due to a reduction in cash burn. However, total expenses rose 9.8% to INR 1,309.2 Cr in FY23 from INR 1,191.4 Cr in the previous fiscal year. 

“Having already achieved operational profitability, the online business is on track to achieve EBITDA profitability by the end of FY 2025,” Licious said in a statement.

The cost of procurement of meat was the biggest expenditure for Licious. In FY23, the startup spent INR 644.6 Cr on procurement, a jump of 16% from INR 554.3 Cr in the previous year. Procurement costs accounted for 49% of the startup’s total expenditure during the year under review. 

Employee benefit expenses rose 14.5% to INR 240 Cr from INR 209.5 Cr in FY22. Employee benefit expenses comprise employee salaries, PF contributions, gratuity, among others. 

Licious entered the coveted unicorn club in 2022 after bagging $52 Mn in its Series G funding round led by IIFL AMC’s Late Stage Tech Fund and various other private equity investors.

It raised $150 Mn in March last year in a funding round led by Amansa Capital. Following this fundraise, the D2C brand forayed into the plant-based meat market by launching UnCrave.

Licious competes against the likes of FreshtoHome, Captain Fresh, Zapp Fresh, and TenderCuts.