D2C unicorn Licious reports narrowed losses in FY23

Direct-to-consumer (D2C) unicorn Licious which sells meat and seafood online has narrowed its losses while experiencing a slight boost in its revenue for the fiscal year 2023 (FY23) compared to the previous fiscal.

The Bengaluru-based company reported an FY23 loss of Rs 528.6 crore, a 38.2% reduction from the Rs 855.6 crore loss in the prior financial year on a consolidated basis. Meanwhile, its operating revenue increased by 9.6%, touching Rs 747.8 crore in FY23, compared to Rs 682.6 crore in FY22, according to recent financial statements.

The startup’s total income was Rs 808.9 crore in the financial year ended this March—up from Rs 706.1 crore in the previous fiscal year.

In November last year, co-founder Vivek Gupta projected that Licious would surpass the Rs 1,000 crore revenue milestone in FY23. Additionally, he had mentioned the company expected its revenue to soar beyond the Rs 1,500 crore mark within the next 12 months.

The forecast came approximately six months after securing $150 million in Series F2 funding, led by Amansa Capital.

The D2C firm witnessed a 9.9% increase in overall expenditure, reaching Rs 1,309.3 crore in FY23, compared to Rs 1,191.5 crore in FY22. The cost of materials consumed, comprising the purchase of meat and fish products for Licious, saw a 16.3% rise to Rs 644.7 crore from Rs 554.3 crore, accounting for nearly half of the total expenses.

The startup allocated Rs 239.9 crore to employee benefits—a 14.5% rise from the Rs 209.5 crore spent in the previous fiscal year, making it the second-largest expense category, excluding other expenses.

Against the backdrop of reduced losses and a modest uptick in revenue during FY23, the company hopes to achieve EBITDA profitability. Just this month, the co-founders of Licious revealed that the company is nearing EBITDA profitability, driven by strong business growth in recent months.

Licious has raised a total funding of $490 million over 11 rounds, according to Tracxn. In October 2021, it became a unicorn after a $52 million Series G funding round led by IIFL AMC.

The meat delivery company is not looking to raise money currently, co-founders Abhay Hanjura and Vivek Gupta told YourStory earlier this month.

Gupta said the company is not currently engaging with any investor to raise capital, adding that it still has more than $100 million in the bank.

Commenting on Licious’ initial public offering (IPO) plans, Gupta noted the company is not in a hurry for an IPO, and that it will opt for a public listing when it ensures a steady dividend after making profits for five continuous years.