Do you know that Licious Business Model was established and executed by only two people in Bengaluru, and growing per year at the rate of 300%, they started up this business model without any funding, by adding just their savings only, and there are many facts about this startup which we are going to reveal in this article.
The journey of the Licious Business Model is quite interesting, how they clicked ideas, how they started, how did they get fame, and how they built a huge business model and got massive success, all attributes are going to be covered in this article.
If you will do in the future the thing that you are doing now, then you will be getting the things that you are getting now.
How Was Licious Business Model Idea Clicked
The company in which Abhay Hanjura was working, was the client of Helicon Ventures, in which Vivek Gupta was working, and they meet together for business matters and built a strong bounding.
With the consistent meetings, they became friends a very few times because of the same thought pattern of both of them.
They both were thinking about growing up with a different and long visionary business model but were not aware of the thought pattern of each other.
By discussing the same topic i.e. growing up a business model, they clicked the idea of starting up and they made their mind to do so.
They were looking for a business idea that is not being managed well in the market, so they can invoke the proper management and stand up a proper business model with an excellent business strategy.
After researching a lot, they found the meat industry is unorganized more than 90% in India, and that is the missing part of the market where they can jump and make their stand.
Research on Meat Market
They research the meat market very deeply and recognized the cons and drawbacks of the meat industry, about quality, service, hygienic aspects, delivery problems, safety, trustworthiness, and many other aspects.
They found that if they get success to manage the meat market, it can be converted into a huge scale and potential business in India.
By seeing a very huge opportunity in this mess, they founded the Licious in July 2015 in Bangalore.
Size of Meat Industry in India
While researching the market cap and other details, they caught the data that the size of the meat industry is $45 Billion, i.e. 3 Lakh Crores INR.
The second aspect was the unorganized management of the meat market over India, and it was the key point to jump into this business for both of the licious founders.
India is well-known as a vegetarian country over the world, but the figures would make you surprised that more than 72% population of India eat Non veg food.
So, it was not a big risk to invoke in the meat industry and set up a licious business model.
Owner And Founders of Licious And Their Journey
The Business Model of Licious was founded by Abhay Hanjura and Vivek Gupta in July 2015 in Bangalore.
Abhay Hanjura basically belongs to Jammu, and later on, he moved to Bangalore and pursued his graduation there.
After graduation, he pursued the learning of HR and Marketing from the Indian Institute of Insurance.
Talking about his professional career, he started his career with Infosys, and later on, switched to Google, then Bajaj Allianz, and then he joined India Insure Risk – The Risk Managers, and lastly he joined Futurisk Insurance Broking company, where he served the longest i.e. 5 years.
Finally resigning from Futurisk in 2015, he made up his mind for his own startup.
Talking about the second founder of Licious, Vivek Gupta, he belongs to Chandigarh where he completed his basic study and completed the B.com from Punjab University.
He has been being legendary in Study, and the proof of it is that they cleared C. A (Chartered Accountant) in the age of just 21 years.
After completion of their studies, he moved to Bangalore to have a better job to initiate a professional career.
He started his career with Tavant Technologies company, then he joined Helion Ventures Partners, and having such an experience with it, he resigned from there and joined Mobicom company, where he was appointed as a non-executive director.
He has resigned from Mobicom in 2021, which means, he was doing the job and own business parallelly, which is a great established example of good time management.
USPs(Unique Selling Proposition) of Licious Businsess Model
Founders of Licious observed that purchasing raw meat is a difficult deal for the people, they have to face the crowd, bad smell, and hygienic affected safeties.
In a nutshell, people don’t prefer to keep approach the offline purchase of meat until and unless they do have the alternative.
They made the Primary USP of delivering the hygienic qualitative meal to the people, to avoid the unnecessary visit of people to the meat shop, and also in terms of providing the fresh and clean meat to customer’s doorstep.
The second USP was made to protect and make survival for the see food raw materials by establishing the cold storages so that the seafood can not be wasted and the temperature could be maintained as well.
The third USP was beyond the thought in the world of raw meat materials, they focused on the online delivery of raw meat which was totally a new concept.
They kept only two stores from where people can make offline purchases, one store was in Gurgaon, and the second one was in Bangalore.
The center point of the licious business model was to solve the problem of people that they were facing by visiting the shop, and that’s why they emphasize the online meat delivery to their customers by taking orders via a smartphone app.
As online delivery of meat was the focused key of their business model, they were committing to deliver the ordered items within 90 to 120 minutes.
The establishment of the next USP was to work on providing a fresh meal by maintaining the temperature of storage where the meat is stored.
The business model of Licious is working on the micro strategy, and the fifth USP is the proven proof of that.
Licious did not ignore the packaging aspect for their business, they focused a lot on packaging attributes and gave it the same importance as other attributes.
If you have purchased the meat from the meat shop ever, you would have noticed that the shopkeeper gives you uncleaned meat by packing in black polythene, right?
But, Licious does not do this, they did not keep this approach, they are focusing on packaging and they provide you the proper packing.
They introduced the white level packaging, where they clean the meat properly first, then pack it in the packaging materials with three layers vacuum pack.
As a result of this packaging strategy of licious business model, the process of oxidation can not occur and you get as fresh meat as it was in the cold storage.
Licious Business Model
The business model of Licious is Farm to Door Business Model, which means from grooming the hen, fish, and other aspects to delivering them to your doorsteps are managed by their own efforts.
According to the fonder of Licious Abhay Hanjura, the cold storage to maintain the see food fresh and the water plants are own by them, they are not rented or borrowed.
Licious is owning five processing centers in India where the whole process from grooming the nonveg materials to doorstep delivery is executed.
Talking about the delivery centers, they are holding 90 delivery centers in 15 cities of India from where they are delivering the meal packages to the customers.
Working on the daily rotation of goods business model, they did not keep the materials more than one day, before EOD, all the received materials are delivered, so that they can provide fresh materials to the customers on the next day.
Revenue Model of Licious
With the starting of the licious business model, they have been growing with the rate of 300% per annum constantly, and the average growth of the last year was around 500% .
The revenue of the first year of starting i.e. the revenue of 2015 was around 1.47 Cr. INR and revenue of FY 2020 are 180 Cr.
92% of total revenue comes from only the products and services and the rest 8% of revenue gets generated from the other investment like mutual funds and assets.
Licious is holding a very huge customers base of 4,00,000+ customers across the India, amongst that 90% of customers are repeated.
More than 17,000 orders are being served per day across the cities all over India, which stats the service model of licious.
Funding and Valuation of Business Model of Licious
As long as the business grows in an exponential way, it requires more money and other efforts, and licious also kept that way for more growth.
They have accepted the funding of $286.5 Million till the date and the valuation of licious is $700 Million till the date.
Competitors of Licious
As you know that as long as you grow more, your competitors get hikes day by day, and the licious business model is not excluded from it.
There are many competitors of Licious, but the major competitors are Fresh to Home and Tender Cuts.
Future Plans of Licious
The real business is that which constantly works and also thinks about the future as well and makes the future plan, right?
Licious is not excluded from them, the future plan of licious is to expand the figures of the offline stores, and enter to the International market as well.
And the third and last goal, for now, is to touch 1000 Cr. till 2023 in terms of revenue.
Conclusion on Licious Business Strategy
“Problem is not a problem, but finding a solution is the problem”, this sentence was said by sir Elon Musk, and the founders of licious have proven it true.
No one can imagine that just organizing the meat material can produce 180 Cr.INR per month, but these two guys made it possible.
If you also are thinking to execute any business idea, you should read and analyze the success stories of this kind of startup from clicking the ideas to the execution and success of that business model.