Licious: Licious narrows FY24 net loss by 44%, revenue down 8% to Rs 685 crore

The Bengaluru-based firm attributed the revenue drop to the closure of distribution channels, especially Dunzo, along with a reduction in exposure to modern trade and local stores as the company started focusing more on owned channels.

The losses resulting from the shutdown of Dunzo and Swiggy Meatstore were balanced out by a 35% year-on-year growth in quick commerce deliveries, the company said on Wednesday.

Temasek-backed Licious expects to reach earnings before interest, taxes, depreciation and amortisation (Ebitda) breakeven, or achieve profitability in FY25, as it is actively expanding its offline store presence.

Licious is now doubling down on building an omnichannel network and plans to open 500 offline stores in key markets over the next few years.

On Monday, Delightful Gourmet acquired Bengaluru-based offline retailer My Chicken and More to bolster its omnichannel presence and tap into new users, increasing its physical retail footprint to 26 locations.

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“During the pandemic-fueled surge in online consumption, we focused on scaling supply and cold chains to unprecedented levels in India, which we’ve accomplished. We are now focused on building a full-stack distribution operation through an omnichannel strategy,” said cofounders Ajay Hanjura and Vivek Gupta. “Last year has been a transition, with short-term impacts from strategic adjustments. However, we expect to see the positive results of these choices by the end of FY25,” they added.

Around 85% of the brand’s sales are through its own website, while online grocery and quick-commerce platforms account for the remainder. Its flagship loyalty programme, Infiniti, has around 2 lakh weekly active subscribers, contributing to 58% of the company’s monthly business. It currently serves 4 million households.

ET had earlier reported that the meat brand is also piloting 15-minute deliveries of ready-to-eat food items in certain locations in Gurugram, though its standard delivery time remains 30 minutes.