India’s direct-to-consumer food ecosystem is showing signs of renewed momentum, and Licious is emerging as a key example of this recovery. The Temasek-backed D2C meat and seafood retailer reported a strong rebound in business performance, with revenue for the April–December period rising 47 percent year-on-year to ₹839 crore, driven by tighter execution, higher order frequency, and improved city-level density.
According to people familiar with the company’s performance, operating losses during the nine-month period remained largely flat at ₹100–110 crore, reflecting a sharper focus on cost discipline even as scale improved. For the full fiscal year FY26, Licious is expected to report EBITDA losses of around ₹150–160 crore, indicating a calibrated growth strategy rather than a return to cash-burn-heavy expansion.
The revenue acceleration has been most visible in Licious’ top three markets—Bengaluru, Delhi-NCR, and Mumbai—which together recorded 67 percent growth over the same nine-month period. These cities remain the backbone of the company’s D2C business India strategy, benefiting from dense consumer clusters, repeat ordering behaviour, and faster fulfilment cycles.
This rebound marks a notable shift from the slowdown Licious experienced after the venture funding boom of 2021–2022. During that period, the company raised close to $150 million and clocked a 64 percent surge in revenue in FY22. However, in FY23, revenue growth dropped to below 10 percent, while annual losses crossed ₹500 crore, forcing a strategic reset focused on curbing losses and improving unit economics.
The turnaround became clearer in FY25. Licious reported operating revenue of ₹797 crore, up 16 percent year-on-year, while net losses narrowed significantly to ₹218 crore from ₹298 crore in FY24. This improvement underscores how India’s D2C brands are increasingly prioritising sustainable growth over aggressive scale-at-all-costs playbooks.
A major driver of the recent performance has been Licious’ sharper focus on high-frequency users and faster deliveries. The company’s 30-minute delivery service, Licious Flash, now serves over half of its consumer base, helping improve retention and order frequency. According to industry observers, this quick commerce D2C push has played a critical role in lifting operating momentum without proportionately increasing costs.
Despite the omnichannel D2C strategy, online channels continue to dominate. Nearly 80–85 percent of Licious’ revenue for the nine-month period came from online sales, highlighting the continued strength of direct-to-consumer India models in food and grocery. Offline, the brand currently operates only in Bengaluru and Mumbai, but has expanded its physical footprint rapidly—from 50 outlets in October to 64 retail outlets in just three months. The company is now on track to reach around 80 stores across the two cities by the end of the fiscal year.
In 2024, Licious also made strategic moves to consolidate its offline presence, including the acquisition of My Chicken and More, which added 23 Bengaluru-based stores through a cash-and-equity deal. At the same time, the company undertook an operational reset, laying off around 80 employees and reallocating resources away from experimental verticals such as plant-based meat.
The broader context is important. Between 2020 and 2023, marquee investors such as Temasek, Prosus, Tiger Global, 3one4 Capital, and Amazon collectively invested over $1 billion into India’s D2C meat and seafood retail sector. As market growth moderated, investors and founders alike began revisiting assumptions, shifting focus toward profitability, density-led expansion, and repeat-driven growth.
Licious’ current trajectory reflects this new phase of the D2C ecosystem India—one where disciplined execution, omnichannel depth, and consumer trust matter more than rapid geographic sprawl. As D2C market trends 2025 continue to favour brands with strong fundamentals, Licious’ recovery positions it as a leading case study in how large D2C food brands can recalibrate and grow sustainably in a more measured funding environment.
