An “operational reset to sharpen the growth focus” was given as the reason for the nearly 3% workforce layoffs at D2C meat and seafood brand Licious. 80 employees will be impacted by the move.
Licious employs 3,000 people, 2,350 of whom work in production and supply chain and 650 in corporate. All departments were impacted by the exercise, according to sources, even though the company did not reveal which functions were impacted.
“Licious, as a brand, sees significant scope in expanding the number of targeted households to further fuel the consumer transition from traditional markets to contemporary purchase formats. We are reprioritizing our cost outlays, considering the new growth levers. In doing this, it is unfortunate that we have to separate with some employees who have been a part of our journey,” the company said in a statement.
In addition to the variable payment for FY24, Licious will compensate the affected employees with two months’ salary, the statement stated.
Licious, which was founded in 2015 by Abhay Hanjura and Vivek Gupta, offers meat, seafood, and prepared foods in 25 cities. For Licious in FY23, the majority of its revenue came from the sale of these goods.
After a $52 million funding round led by IIFL AMC’s Late-Stage Tech Fund in October 2021, the business became a unicorn. It also received $192 million in a Series F round that same year. It has so far raised $490 million in total.
Licious’s operating income increased by just 9.6% to Rs 747.7 crore from Rs 682.5 crore in FY22, despite receiving funding back-to-back in FY23. Additionally, it witnessed a slight increase in losses of 3.1%, from Rs 485 crore to Rs 500 crore in FY23. Fascinatingly, the business stated that it is almost profitable at the EBITDA level.
However according to Licious’ most recent statement, the company is currently tracking an annual revenue run rate of Rs 900 crore. The business added that in the upcoming weeks, it will unveil a new strategy for market expansion.
“With significant investments in the brand, deeper backward integration, and an active pursuit of automation in the supply chain, Licious will focus on expanding the market potential and reach in the next financial year. Licious has already resurrected the marketing spending this year after recasting the growth levers,” the company said.
The biggest participant in this market, Licious faces competition from companies like FreshToHome, Zapfresh, BBDaily, MeatRoot, and Easymeat.
In the last few months, late-stage startups have experienced a sharp increase in layoffs. Since December 2023, Flipkart, Swiggy, InMobi, ShareChat, Polygon, Cult.fit, and Paytm (which is now a publicly traded company) have let go of over 3,500 workers combined.
