Direct-to-consumer (D2C) foodtech platform Licious on Wednesday said it has implemented measures for better business efficiency and is hopeful of closing FY24 with a revenue run rate of Rs 1,200 crore, after a report said the company is going through flat revenues as cash burn continues
In a statement to IANS, Licious said that earlier this year, it turned operating margin profitable with "minimal cash burn at 8 per cent operating profit margin and 30 per cent product gross margin".
To achieve these impactful business results, "given the current context of larger macro-economic factors and without downsizing on people or costs, is a remarkable achievement that we take pride in", said the company.
According to a Moneycontrol report, Licious ended FY23 with a revenue of Rs 700 crore, less than half of Rs 1,500 crore that it initially projected.
"Five months into FY24, Licious looks to be treading a similar path," the report added.
Licious' monthly revenues remain in the Rs 62-68 crore range in the ongoing financial year to date.
While Licious sounds optimistic about September, it still expects revenues to decline in the coming months, said the report, citing internal documents.
In the April-June quarter, the revenue reached Rs 189.9 crore and Licious is likely to end the current quarter with a total revenue of about Rs 180-200 crore.
This shows that FY24 is going to be yet another year of “flat revenue growth” for the company, the report said.
The meat delivery platform told IANS that the brand continues to invest in technology for enhancing consumer experience, supply chain excellence, product innovation, honing the right talent and vendor partner upgrades, "with a strong focus on growing sustainably and responsibly".
"We have been achieving 50 per cent growth year on year, and are confident of sustaining the present growth momentum," it said.
In March last year, the foodtech platform raised $150 million, after it became the first D2C unicorn in the country. The funding round was led by Singapore-based Amansa Capital, along with Kotak PE & Axis Growth Avenues AIF-I. Existing investors also participated in the round.
The Indian meat market -- fairly nascent with a large growth headroom -- is expected to reach $80-85 billion by 2024 and is up for disruption by branded players especially in the online space, according to Bengaluru-based market research firm RedSeer.
The company achieved a billion dollars valuation post receipt of funding worth $52 million led by IIFL AMC's Late Stage Tech Fun & Avendus FLF (Future Leaders Fund).