Licious

Licious – About
 Licious is an e-commerce service, that sells seafood and meat.
 It is operated by Delightful Gourmet Private Limited and headquartered in Bangalore, and
was launched in 2015 by Abhay Hanjura and Vivek Gupta.
 Licious is India's first direct-to-consumer (D2C) unicorn.
 Licious is 29th unicorn of the country in 2021. Licious joined the unicorn club on October 5,
2021.
 Licious is a Bengaluru-based meat and seafood brand. The company serves the best, fresh
and clean fish, chicken, meat, and eggs online.
 Licious works on a farm to fork model owning the entire back-end supply chain and the cold
chain.
 A separate recipe section is also present in their App. It helps the customers to cook
delicious dishes. And also teaches the exotic chef style.
 It operates across Bangalore, Hyderabad, Delhi-NCR, Chandigarh, Mumbai, Pune, Chennai,
Coimbatore, Pondicherry, Jaipur, Kochi, Vizag, Kolkata, and Vijayawada.
 As of March 2023, Licious operates across 20+ cities in India, serving over 1.2 million orders
every month. With processing centers located in Bengaluru, Mumbai and Gurugram, the
brand serves with over 90% repeat consumption across markets.

Business Model:
 Licious has got a farm to fork business model.
 The company handles the entire supply chain. Starting from procurement, processing,
storage to reaching the consumer, in the end, the responsibility of the company is
everything.
 As of march 2023, Licious claims that 50% of the startup's meat comes from its own farms,
which was only 10% in 2020.
 Licious also owns processing and delivery centres.
 Licious has also started to remove the stigma around meat right from the first day.
 Instead of black plastic bags, Licious sold meat in neat boxes and leakage-proof pouches and
containers.
 The company strives to maintain the freshness and the quality of every product.
 They have both, a web platform as well as a mobile app. Consumer loyalty is the main focus
of the brand.

Licious - Revenue Model:

 Licious receives a major chunk of its revenues from the sale of its meat products, seafood,
marinates, and eggs.
 Licious has been successful in amassing more than 1 Million unique customers to date. The
average basket size is INR 700.
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Licious - Product Launch:

Spices:
 Online meat retailer Licious announced in December, 2022 in that it will introduce specialty
spice blends in the top 8 cities.

Plant – Based:
Licious launched plant based programme Uncrave in December, 2022.

Store:
 With the opening of five new Licious Stores in the Delhi-NCR region in June, 2023, Licious is
enhancing its offline presence.
 By providing an immersive environment for devoted Licious fans, these shops hope to alter
the conventional meat-buying process.

Rewards Programme Infiniti:

 The debut of Licious Infiniti, a special rewards-based program for Licious customers, was
announced by Licious in August, 2023.
 The program provides users with endless benefits with no limitations or constraints, as the
name would imply

Licious – Challenges:
Abhay's Family Opposed:
 Abhay Hanjura, who is from Jammu and hails from the family of Kashmiri pandits was
opposed by his family, who are pure vegetarians to getting on with one such idea of building
a meat startup.
 as they didn't restrain him completely from meeting Vivek, the startup took its shape
ultimately and grew to become a revolutionary meat brand.

Late Deliveries:
 Outside of Abhay's house, things went so bad that the startup had to close operations on the
very first day of its launch in a country that is No 4 in meat production globally.
 All of Licious' deliveries were late.

Quality Assurance Challenge:

 Challenge: Maintaining the quality and freshness of meat and seafood products is critical for
Licious.
 Solution: Licious can implement strict quality control measures, including rigorous sourcing
standards, cold chain logistics, and transparent communication with customers about the
sourcing and handling of products. Quality certifications and regular audits can also help
build trust.

Supply Chain and Logistics Challenge:

 Challenge: Managing a complex supply chain for fresh and perishable goods is a logistical
challenge.
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 Solution: Invest in robust supply chain management systems and technologies to optimize
sourcing, inventory management, and last-mile delivery. This may include setting up
centralized distribution centers, implementing route optimization, and using data analytics
for demand forecasting.

Regulatory and Compliance Challenge:

 Challenge: The food industry is subject to strict regulations related to food safety and
quality.
 Solution: Licious should establish a robust compliance department to ensure adherence to
all relevant food safety and quality regulations. Regular training for employees, audits, and
maintaining up-to-date knowledge of regulatory changes are crucial.

Customer Trust Challenge:

 Challenge: Building and maintaining customer trust is essential in the food delivery business.
 Solution: Licious can enhance transparency by sharing information about sourcing, quality
checks, and safety measures. It can also offer a customer feedback system and act promptly
on customer concerns to demonstrate commitment to quality and customer satisfaction.

. Operational Efficiency Challenge:

 Challenge: Maintaining operational efficiency in supply chain, inventory management, and
order fulfillment.
 Solution: Implement inventory management software, automate repetitive tasks, and
streamline order fulfillment processes. Regularly monitor and optimize operations for cost-
effectiveness and speed.

Market Expansion Challenge:

 Challenge: Expanding to new cities and markets requires adaptation and compliance with
local regulations.
 Solution: Develop a market-specific expansion strategy. This includes understanding regional
preferences, regulations, and supply chain capabilities. Establish local partnerships and
adapt the business model to cater to diverse markets.

Sustainability Challenge:
 Challenge: Addressing environmental concerns and adopting sustainable practices.
 Solution: Licious can explore sustainable packaging options, reduce food waste, and
promote responsible sourcing practices. Communicating these efforts to customers can
enhance the brand's image.
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Challenges Faced By Our Clients

 Lack of a systematic procedure for Vendor Master Management

 Absence of any kind of process for selecting the Account code for accounting with no data
to analyze

 Inefficient procedure for Purchase Requisition/Manual Purchase Requisition

 Lack of an organized method for Purchase Order/Manual Purchase Order

 Approvals were merely done through a physical invoice copy which made the system more
complicated

 Multiple duplicate payments being processed which was a big issue

 Payments being done to the wrong vendor

 Zero visibility on expenditures till the invoice is manually entered into accounting software

Solution by Company
 Vendor management and effortless onboarding
 Smart purchase requisition right from submission to approvals
 Efficient quotation request and management
 Flawless Purchase Order, tracking and approval
 Facilitates Goods Received Note (GRN) and Quality Checking of inventory
 Easy invoice management of the received inventory
 Secure and seamless payment management

Result:
The client was able to:

 Save significant amount of time with the help of automated 3-way match on TYASuite
 Save more than 50% time of the accounting team and bring 100% accuracy of entries
through bulk upload feature
 Most importantly, Covid has hit the eco-system and they were able to navigate to a 100%
digital system without much difficulty, with 5X growth in their volume
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Licious - Competitors

The top competitors of Licious are:

 TenderCuts
 FreshToHome
 ZappFresh

Some other Licious challenges include:

 The rise of more competitors and the intensity of the competition in the online meat market
 Frequent livestock infections
 The rise of meat substitutes
 The costs that are involved in servicing smaller orders
 Consumer preferences to buy meat from local meat sellers

Supply Chain:
 A quick look at the D2C operations may justify what Licious is doing. For example, this is how
a traditional meat supply chain had worked before D2C days.
 Farmers → Middlemen → Wholesalers → Butchers → Retailers
 But in the D2C space where Licious and a few other startups like FreshToHome and
Zappfresh are operating, the supply chain only involves:
Farmers → Butchers → Startups
 This ensures that the companies have a 30-40% profit
margin.
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