Licious, the Temasek-backed meat and seafood startup, has finalised an agreement to acquire Bengaluru-based My Chicken and More, a company operating a chain of offline stores, for INR 150-200 crore. The͏͏ deal͏͏ will͏͏ include͏͏ a͏͏ combination͏͏ of͏͏ cash͏͏ and͏͏ equity,͏͏ along͏͏ with͏͏ an͏͏ earnout͏͏ component.
The͏͏ acquisition͏͏ aligns͏͏ with͏͏ Licious’s͏͏ strategy͏͏ to͏͏ expand͏͏ its͏͏ offline͏͏ presence͏͏ as͏͏ it͏͏ seeks͏͏ to͏͏ attract͏͏ a͏͏ growing͏͏ number͏͏ of͏͏ customers͏͏ who͏͏ prefer͏͏ purchasing͏͏ meat͏͏ from͏͏ physical͏͏ stores.͏͏ Similar͏͏ to͏͏ new-age͏͏ consumer͏͏ brands͏͏ like͏͏ Sugar͏͏ and͏͏ Mamaearth,͏͏ which͏͏ initially͏͏ focused͏͏ on͏͏ online͏͏ channels,͏͏ Licious͏͏ aims͏͏ to͏͏ diversify͏͏ its͏͏ income͏͏ streams͏͏ by͏͏ opening͏͏ physical͏͏ locations.
Aggressive͏͏ Expansion͏͏ Plans:͏͏ 40͏͏ Offline͏͏ Stores͏͏ by͏͏ FY-End
Licious͏͏ has͏͏ seized͏͏ this͏͏ opportunity͏͏ and͏͏ plans͏͏ to͏͏ establish͏͏ at͏͏ least͏͏ 40͏͏ offline͏͏ stores͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ current͏͏ fiscal͏͏ year,͏͏ up͏͏ from͏͏ just͏͏ four͏͏ at͏͏ the͏͏ beginning͏͏ of͏͏ the͏͏ year.͏͏ Founded͏͏ in͏͏ 2007͏͏ by͏͏ S͏͏ Mahesha͏͏ of͏͏ Shakthi͏͏ Foods,͏͏ My͏͏ Chicken͏͏ and͏͏ More͏͏ currently͏͏ operates͏͏ 22͏͏ stores͏͏ in͏͏ Bengaluru,͏͏ which͏͏ will͏͏ be͏͏ added͏͏ to͏͏ Licious’s͏͏ portfolio,͏͏ bringing͏͏ the͏͏ company͏͏ closer͏͏ to͏͏ its͏͏ growth͏͏ objectives.
Continue͏͏ Exploring:͏͏ Meat retailer͏͏ Licious plans͏͏ major͏͏ offline͏͏ expansion,͏͏ targets͏͏ 500͏͏ stores͏͏ across͏͏ top͏͏ cities
Bengaluru:͏͏ A͏͏ Key͏͏ Market͏͏ in͏͏ Licious’s͏͏ Growth͏͏ Strategy
Acquiring͏͏ My͏͏ Chicken͏͏ and͏͏ More,͏͏ a͏͏ subsidiary͏͏ of͏͏ Shakthi͏͏ Foods,͏͏ will͏͏ not͏͏ only͏͏ bolster͏͏ Licious’s͏͏ omnichannel͏͏ strategy͏͏ but͏͏ also͏͏ reinforce͏͏ its͏͏ position͏͏ in͏͏ Bengaluru,͏͏ which͏͏ is͏͏ among͏͏ its͏͏ largest͏͏ markets.
Bengaluru͏͏ currently͏͏ generates͏͏ approximately͏͏ INR͏͏ 250͏͏ crore͏͏ in͏͏ sales,͏͏ a͏͏ figure͏͏ expected͏͏ to͏͏ rise͏͏ to͏͏ INR͏͏ 400͏͏ crore͏͏ once͏͏ Licious͏͏ integrates͏͏ My͏͏ Chicken͏͏ and͏͏ More.͏͏ This͏͏ represents͏͏ a͏͏ significant͏͏ contribution͏͏ of͏͏ nearly͏͏ 50%,͏͏ considering͏͏ Licious͏͏ has͏͏ an͏͏ annualised͏͏ revenue͏͏ run͏͏ rate͏͏ (ARR)͏͏ of͏͏ around͏͏ INR͏͏ 800͏͏ crore͏͏ ($100͏͏ million).
My͏͏ Chicken͏͏ and͏͏ More͏͏ is͏͏ a͏͏ profitable͏͏ business,͏͏ generating͏͏ revenue͏͏ of͏͏ INR͏͏ 100-110͏͏ crore͏͏ with͏͏ an͏͏ EBITDA͏͏ margin͏͏ of͏͏ 2-3%,͏͏ according͏͏ to͏͏ Moneycontrol͏͏ citing͏͏ sources.
CEO͏͏ S͏͏ Mahesha͏͏ to͏͏ Join͏͏ Licious Post-Acquisition:
“Under͏͏ the͏͏ merger͏͏ agreement,͏͏ S͏͏ Mahesha͏͏ will͏͏ join͏͏ Licious͏͏ and͏͏ remain͏͏ with͏͏ the͏͏ company͏͏ for͏͏ at͏͏ least͏͏ four͏͏ years,”͏͏ said͏͏ one͏͏ of͏͏ the͏͏ sources.
S͏͏ Mahesha,͏͏ CEO͏͏ of͏͏ Shakthi͏͏ Foods,͏͏ has͏͏ over͏͏ two͏͏ decades͏͏ of͏͏ experience͏͏ in͏͏ the͏͏ poultry͏͏ industry.͏͏ He͏͏ began͏͏ his͏͏ career͏͏ in͏͏ 2003͏͏ as͏͏ a͏͏ Sales͏͏ Officer͏͏ at͏͏ Uttara͏͏ Foods͏͏ and͏͏ Feeds͏͏ Pvt.͏͏ Ltd.,͏͏ where͏͏ he͏͏ was͏͏ responsible͏͏ for͏͏ selling͏͏ poultry͏͏ feeds͏͏ to͏͏ farmers͏͏ in͏͏ the͏͏ Hassan͏͏ and͏͏ Shimoga͏͏ districts͏͏ of͏͏ Karnataka.
“In͏͏ 2005,͏͏ he͏͏ joined͏͏ Lifeline͏͏ Tender͏͏ Chicken͏͏ as͏͏ a͏͏ Marketing͏͏ Officer͏͏ for͏͏ Institutional͏͏ Sales.͏͏ It͏͏ was͏͏ after͏͏ this͏͏ that͏͏ he͏͏ decided͏͏ to͏͏ shift͏͏ focus͏͏ to͏͏ the͏͏ meat͏͏ retail͏͏ market͏͏ and͏͏ bring͏͏ his͏͏ entrepreneurial͏͏ vision͏͏ to͏͏ life,”͏͏ the͏͏ company͏͏ stated͏͏ on͏͏ its͏͏ website.
Queries͏͏ directed͏͏ towards͏͏ Licious͏͏ and͏͏ My͏͏ Chicken͏͏ and͏͏ More͏͏ went͏͏ unanswered.
This͏͏ development͏͏ comes͏͏ at͏͏ a͏͏ time͏͏ when͏͏ companies͏͏ like͏͏ Licious,͏͏ Nandus,͏͏ Venkys,͏͏ Zepto,͏͏ and͏͏ Tata’s͏͏ BigBasket͏͏ are͏͏ all͏͏ vying͏͏ for͏͏ market͏͏ leadership͏͏ in͏͏ a͏͏ crowded͏͏ space.͏͏ As͏͏ leading͏͏ cities͏͏ show͏͏ signs͏͏ of͏͏ saturation,͏͏ these͏͏ companies͏͏ are͏͏ seeking͏͏ new͏͏ growth͏͏ opportunities.
Licious Eyes͏͏ Untapped͏͏ Potential͏͏ in͏͏ India’s͏͏ Meat Market:
Licious͏͏ believes͏͏ it͏͏ has͏͏ only͏͏ scratched͏͏ the͏͏ surface͏͏ and͏͏ still͏͏ has͏͏ significant͏͏ room͏͏ for͏͏ growth.͏͏ The͏͏ total͏͏ addressable͏͏ market͏͏ (TAM)͏͏ for͏͏ meat͏͏ companies͏͏ is͏͏ approximately͏͏ 30͏͏ million͏͏ households,͏͏ but͏͏ Licious͏͏ has͏͏ reached͏͏ only͏͏ 4͏͏ million͏͏ thus͏͏ far.͏͏ According͏͏ to͏͏ Abhay͏͏ Hanjura,͏͏ co-founder͏͏ of͏͏ Licious,͏͏ India͏͏ as͏͏ a͏͏ meat-consuming͏͏ country͏͏ is͏͏ still͏͏ in͏͏ its͏͏ early͏͏ stages͏͏ of͏͏ development.
On͏͏ average,͏͏ a͏͏ meat͏͏ consumer͏͏ in͏͏ India͏͏ consumes͏͏ only͏͏ 30͏͏ grams͏͏ of͏͏ meat͏͏ per͏͏ day,͏͏ significantly͏͏ lower͏͏ than͏͏ the͏͏ global͏͏ benchmark͏͏ of͏͏ around͏͏ 150͏͏ grams.͏͏ In͏͏ contrast,͏͏ individuals͏͏ in͏͏ advanced͏͏ economies͏͏ like͏͏ the͏͏ US͏͏ consume͏͏ approximately͏͏ 300͏͏ grams͏͏ of͏͏ meat͏͏ per͏͏ person͏͏ daily.͏͏ “There͏͏ is͏͏ still͏͏ a͏͏ lot͏͏ to͏͏ be͏͏ done͏͏ in͏͏ India,͏͏ and͏͏ we’re͏͏ building͏͏ Licious͏͏ with͏͏ a͏͏ long-term͏͏ vision,”͏͏ Hanjura͏͏ added.
To͏͏ drive͏͏ growth,͏͏ Licious͏͏ aims͏͏ to͏͏ concentrate͏͏ on͏͏ the͏͏ top͏͏ 20͏͏ cities͏͏ in͏͏ India,͏͏ including͏͏ Kolkata͏͏ and͏͏ Chennai,͏͏ where͏͏ it͏͏ has͏͏ yet͏͏ to͏͏ establish͏͏ a͏͏ loyal͏͏ customer͏͏ base.͏͏ The͏͏ company͏͏ is͏͏ also͏͏ expanding͏͏ its͏͏ product͏͏ range͏͏ by͏͏ venturing͏͏ into͏͏ new͏͏ categories͏͏ like͏͏ momos,͏͏ which͏͏ will͏͏ help͏͏ increase͏͏ average͏͏ order͏͏ values͏͏ (AOVs).
Licious’s͏͏ Financial͏͏ Health͏͏ and͏͏ Future͏͏ Fundraising͏͏ Plans:
Licious͏͏ currently͏͏ has͏͏ an͏͏ average͏͏ order͏͏ value͏͏ (AOV)͏͏ of͏͏ approximately͏͏ INR͏͏ 600,͏͏ an͏͏ increase͏͏ from͏͏ INR͏͏ 500͏͏ three͏͏ to͏͏ four͏͏ years͏͏ ago,͏͏ according͏͏ to͏͏ co-founder͏͏ Vivek͏͏ Gupta.
Gupta͏͏ and͏͏ Hanjura͏͏ are͏͏ also͏͏ developing͏͏ their͏͏ own͏͏ ready-to-eat͏͏ category,͏͏ featuring͏͏ curries,͏͏ pastes,͏͏ and͏͏ similar͏͏ items͏͏ that͏͏ can͏͏ be͏͏ purchased͏͏ as͏͏ add-ons͏͏ with͏͏ meat.͏͏ Simultaneously,͏͏ Licious͏͏ plans͏͏ to͏͏ open͏͏ 4-5͏͏ offline͏͏ stores͏͏ by͏͏ the͏͏ end͏͏ of͏͏ June,͏͏ with͏͏ the͏͏ goal͏͏ of͏͏ increasing͏͏ that͏͏ number͏͏ to͏͏ around͏͏ 40͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ current͏͏ fiscal͏͏ year.
According͏͏ to͏͏ Gupta’s͏͏ estimates,͏͏ setting͏͏ up͏͏ one͏͏ store͏͏ costs͏͏ around͏͏ INR͏͏ 40͏͏ lakh;͏͏ however,͏͏ Licious͏͏ is͏͏ well͏͏ capitalised͏͏ and͏͏ does͏͏ not͏͏ anticipate͏͏ needing͏͏ to͏͏ raise͏͏ funds͏͏ in͏͏ the͏͏ near͏͏ future.͏͏ “We͏͏ have͏͏ $100͏͏ million͏͏ in͏͏ the͏͏ bank͏͏ and͏͏ will͏͏ only͏͏ require͏͏ a͏͏ pre-IPO͏͏ round͏͏ sometime͏͏ in͏͏ 2026,”͏͏ Gupta͏͏ stated.
Founded͏͏ by͏͏ Vivek Gupta͏͏ and͏͏ Abhay Hanjura͏͏ in͏͏ 2015,͏͏ Licious͏͏ has͏͏ rapidly͏͏ expanded͏͏ and͏͏ is͏͏ the͏͏ most͏͏ heavily͏͏ funded͏͏ company͏͏ in͏͏ the͏͏ fresh͏͏ animal͏͏ protein͏͏ sector.͏͏ The͏͏ company͏͏ has͏͏ secured͏͏ approximately͏͏ $490͏͏ million͏͏ from͏͏ investors͏͏ including͏͏ Vertex͏͏ Ventures,͏͏ Bertelsmann͏͏ India͏͏ Investments,͏͏ and͏͏ 3one4͏͏ Capital.͏͏ Notable͏͏ angel͏͏ investors͏͏ in͏͏ Licious͏͏ include͏͏ the͏͏ Kamath͏͏ brothers͏͏ and͏͏ Aman͏͏ Gupta͏͏ from͏͏ Boat.͏͏ The͏͏ company͏͏ was͏͏ last͏͏ valued͏͏ at͏͏ $1.5͏͏ billion͏͏ after͏͏ raising͏͏ $150͏͏ million͏͏ in͏͏ March͏͏ last͏͏ year,͏͏ according͏͏ to͏͏ Tracxn,͏͏ a͏͏ private͏͏ markets͏͏ data͏͏ provider.
Besides͏͏ local͏͏ butchers,͏͏ Licious͏͏ primarily͏͏ competes͏͏ with͏͏ Amazon-backed͏͏ FreshToHome,͏͏ which͏͏ has͏͏ secured͏͏ approximately͏͏ $290͏͏ million͏͏ to͏͏ date.
