Sector: FoodTech
Founded: 2015
Valuation: $1.05 billion (2021)

Overview: Licious is an online meat and seafood brand that ensures fresh, hygienic, and high-quality products are delivered directly to consumers’ homes. It has disrupted the traditionally unorganized meat market in India. Licious built vertically integrated supply chains, ensuring control over the entire value chain, from procurement to delivery, to maintain quality and efficiency.

Challenges encountered:

• Managing the cold chain logistics required to deliver perishable items.
• Gaining consumer trust in a market where fresh meat is typically purchased offline.
• Managing inventory and perishability of products, leading to high wastage and operational inefficiencies.
• High logistics and delivery costs due to the need for maintaining cold chain storage.
• Cash flow challenges from expanding into new cities while managing existing operations

Solutions:

• Cold Chain Optimization: Suggested optimizing the cold chain infrastructure to reduce wastage and improve efficiency in handling perishable goods.
• Dynamic Pricing and Inventory Management: Implemented a dynamic pricing model to manage demand fluctuations and minimize product waste.
• Cash Flow Improvement: Recommended introducing subscription-based deliveries for regular customers, improving cash flow predictability and customer loyalty.
• The company raised $192 million from investors, helping to expand its operations across India and support marketing efforts to build brand awareness.

Outcomes Attained:

• Reduced product wastage by 15%, leading to lower operational costs.
• Improved cash flow through subscription models, allowing the company to expand without liquidity concerns.
• Enhanced logistics and cold chain management, leading to faster deliveries and higher customer satisfaction.