Vivek Gupta and Abhay Hanjura: Pioneers of Disrupting India’s Meat Market with Licious

Vivek Gupta and Abhay Hanjura have proven that age is no barrier when it comes to crafting a groundbreaking success story. These seasoned entrepreneurs, often referred to as the “branded butchers,” have redefined India’s meat industry with their venture, Licious. With a compelling vision to provide quality, variety, and respect in the meat business, they have made Licious the most significant meat and seafood brand in India.

Licious, which took its first steps in July 2015, experienced steady growth during its initial years. However, it was during the last two years, amidst the pandemic’s challenges, that the company made remarkable strides, culminating in its entry into the unicorn club with a valuation of over $1 billion. The co-founders view this unicorn status as validation of their remarkable journey, symbolizing the recognition of their achievements. In FY19, Licious reported an operating revenue of INR 69.4 crore, which surged to INR 131.8 crore in the following fiscal year. During the pandemic, it witnessed a remarkable leap, reaching INR 420.3 crore in FY21. The startup is now on track to achieve an annualized revenue run rate of INR 1,000 crore for FY21.

This remarkable growth corresponds with the expansion of Licious from a single city (Bengaluru) to a presence in 15 cities. Their monthly orders have grown exponentially, from an average of 3,000 per month to over 2 million. Operating with just five delivery centers in the initial phase, they now have over 100. Furthermore, Licious has begun entering tier 2 cities, with promising early results. Their product range has also seen substantial expansion, increasing from 15-25 SKUs to over 5,000.

One particularly noteworthy achievement is the rapid growth of their ready-to-eat and ready-to-cook division. Licious began with fewer than a dozen SKUs in 2016 and now boasts over 150. This segment has grown to nearly INR 200 crore, contributing 20% to the company’s revenue. Comparing this to the per capita meat consumption in India, which stands at just 7 kg, with 112 kg in the US, underscores the immense growth potential in the market.

The company’s rapid ascent and impact on the meat and seafood category haven’t gone unnoticed by investors and partners. Chetan Naik, Partner at IIFL AMC, praised Licious for disrupting the unorganized and underserved meat and seafood market in India. The co-founders’ customer-centric approach, focus on supply chain, quality, freshness, and innovation have resonated with customers. According to Naik, they have created a robust brand and established themselves as category leaders, ranking among the fastest-growing direct-to-consumer (D2C) brands in India. Licious also boasts impressive revenue retention metrics.

However, Licious’ journey wasn’t without its share of challenges. Overcoming the deeply ingrained unorganized meat and seafood market in India was a considerable obstacle. Thousands of local meat shops offered products of questionable hygiene, and the industry lacked transparency in both packaging and business practices. Licious faced the stigma surrounding meat consumption and had to address the concerns of meat-eaters who had no other options. Investor reluctance was another hurdle. Gupta and Hanjura faced skepticism and personal biases from investors who couldn’t grasp the potential of their business in the Indian market. Many believed that Indian consumers wouldn’t pay for quality premium meat products, but the co-founders were determined to prove them wrong.

In early 2021, Licious took a significant step by enlisting Bollywood actors Anil Kapoor and Arjun Kapoor as brand ambassadors, which propelled their brand into the limelight. The first mass advertising campaign provided an essential boost to the category, significantly accelerating brand growth.

The COVID-19 pandemic presented a turning point, as the surge in online deliveries and consumer willingness to try new brands drove down customer acquisition costs. The company boasts over 90% repeat consumption orders across all markets, ensuring strong user stickiness. Despite the moderation of this growth in the next few years, the future remains promising.

For Gupta and Hanjura, this is just the beginning of their mission to revolutionize India’s meat market. They aspire to do for the meat industry what Amul achieved for milk and dairy products. Even after six years of operation, they continue to be committed to “working round the cluck” to grow their business. Their unwavering dedication and innovative approach make them true pioneers in India’s meat industry.