Hidden Startup Secrets of Licious | Licious Business Model

Hidden Startup Secrets of Licious,Licious Business Model,
Hidden Startup Secrets of Licious | Licious Business Model

If you are a non-vegetarian lover, then you must have heard of licious. Today, after delivering more than 2 million orders per month, licious became the first P2C (peer-to-consumer) company to attain Unicorn Status, with its evaluation crossing $1 billion. 

An investment broker and investment banker without in-depth knowledge of the meat industry built india’s largest meat brand. There are some business lessons we can learn and implement in our own businesses.

Company Details

City: Bengaluru
Founders: Abhay Hanjura, Vivek Gupta
Founded: 2015
Industries: Delivery Service, E-Commerce, Food and Beverage, Food Delivery
Number of employees: 1001-5000
Revenue: Rs 682.6 cr (FY22)
Official Website: licious.in

Licious Business Model

The story begins when Abhay Hanjura and Vivek Gupta used to meet regularly for meals. Both were non-vegetarian lovers and once discussed the idea of selling meat online. 

At first, they delivered the meat themselves, but soon realized that it wasn’t working as customers weren’t coming and cash was burning on a daily basis. 

Licious Startup Story,

Read More: Mensa’s Business Model

They decided to shut down the business, but abhay told vivek to try one more time, with the thought that something great might happen.

With this thought, they re-entered the market. The founder realized that after spending a lot of money, if customers weren’t coming, then it had something to do with their business process. 

From here, everything changed for licious.

But the Question Comes What Did They Do That a Meat Selling Company is a Billion Dollar Brand ? 

Abhay and Vivek Identified a Gap in the Market and Used Three Simple Business Strategies to Fill It.

After researching, they found that india has the world’s second-largest population but only 68% of its people are non-vegetarian. The $30 billion meat industry in india was completely unorganized.

After identifying two critical problems in the meat industry, abhay and vivek designed their first business strategy, which was a “Predictable Experience.” 

Licious Founder - Vivek Gupta and Abhay Hanjura

When they researched, they discovered two things about the Meat Market

  1. Dependency: In india, most people rely on local market shops for their needs. 
  2. Quality: Quality is a concern as there is a risk of contamination or steroid growth in the meat that is sourced from uncertain sources.

Interestingly When They Talked to Consumers , People Want to Solve This 2 Problems

However, due to limited options, people often resort to buying meat from wet markets. To address this issue, Licious has been delivering quality meat within 2 hours to customers since day one. With its commitment to quality.

Licious has created a strong value proposition and predictable customer experience, ensuring that customers receive quality meat within 2 hours of placing their order.

But, when they started they made 2 big mistakes.

Shadowed Business Model

They Both Started Business but Had No Structured Business Model

Licious - Shadowed Business Model,

Both Knew That They Wanted to Deliver Quality Meat but How ?

Licious had not established any processes for its operations, which resulted in a high risk of failure. Although they promised a 2 hour Delivery Service, they did not have a plan in place for fulfilling this promise. 

This resulted in late deliveries, causing customer attrition during the first 4 months. However, Licious was able to overcome this challenge and introduce its legendary business model to the market, but only after correcting its mistake.

Farm Fork Model

In simple words , getting the complete value in chain the business, now this very carefully value chain something looks like this.

Licious - Farm Fork Model,

In every business , there are some Primary Activity and some Secondary Activities. These activities are majorly included in primary activities.

Primary Activity

  1. Inbound Logistics: Arrival of Raw Material 5.23
  2. Operations: Working on the Raw Material.
  3. Outbound Logistics: to Send Produced in the Market.
  4. Marketing and Sales: You Sold Product in the Market 
  5. Service: You Sold the Product but You Also Have Service to the Customer . 

But All This Tasks Will Fail if Not Supported by Secondary Activities.

Secondary Activities

  1. Firm Infrastructure 
  2. Human Resource Management 
  3. Technology Development 
  4. Procurement: From where you bring your goods and at what cost After combining both primary and secondary activities, a business value chain is formed. 

    When these things are involved and done, then only your business creates value in the market Learn More Apna Business Model


    Licious starts by partnering with livestock farmers and fishermen. They also offer veterinary consultation on animal husbandry practices. 
    When the meat is ready, Licious purchases it from the farmers and fishermen and transports it in temperature-controlled trucks to their warehouse. 
    At the distribution center, Licious’s own butchers pack the meat in a sanitary environment into various cuts and assortments.

    If You Ordered From Licious Then You Would Always Find These 2 Things 
    1. No Black Polythene: No meat comes packed in black polythene , always packed in white transparent packets.
    2. Vacuum: Due to this meat doesn’t expire fast , when they are packed then they are out for delivery.
    They reduced conscious waste from 40% to 3% by using data analytics and forecasting demand.
    They can now provide their customers with quality deliveries in 2, 6, and 12 hours.
    You might be wondering how, in a price-sensitive country, someone can buy a 200-rupee chicken for 400 rupees. Licious then implemented its third strategy.

    Licious Logo And Tagline

    On some versions of the logo, there is also a simple, delicate tagline ‘Born to Eat,’ written in a professional typeface that adds a sense of reliability and expertise to the company.
    Licious Logo And Tagline,

    GAS (General Adaptation System)

    This is the biological process responsible for making the habit. In scientific terms, gas means our body passes through any stress; it absorbs it, and prepares itself for higher stress. 
    GAS (General Adaptation System),

    General adaptation syndrome applies not only to stressful situations but also to happy and satisfied ones.
    How Licious Used It ?
    Licious invested their funding in improving operations and sourcing quality products, instead of marketing. This helped establish them as a provider of high-quality meat.
    Few people know that Licious was the first company to attain
    FSSC Certification, a globally recognized standard for food quality. With the quality of their products, people’s tastes and preferences changed, leading them to seek out only high-quality meat. 
    This shift in consumer psychology has made it a habit to order from Licious when they are hungry, just as they would order from food delivery platforms like Swiggy or Zomato. Learn More Bigbasket Business Model
    The combination of quality and convenience offered by Licious has made it a highly preferred option for consumers.

    Licious Business Lessons

    Most Importantly What Are Those Business Lessons to Learn and Implement in Our Business

    Licious Business Lessons,

    1) Don’t think if you want it, people want it too business is about Problem Solving, but people take it so seriously that they create businesses from their personal problems. 
    That is the problem with many people, whether they realize it or not. Abhay and Vivek did market research, talked to customers, and then learned that people want quality meat but no options.
    And then decide to start their business always remember: Never make the product first; always study the consumer first.
    2) Trust is the Most Expensive Thing for Customers. If People Don’t Trust Your Product, They Will Never Buy It. 
    It Can Happen; You Can Make Money for the First Time, but Not Always, and Trust is Built When You Deliver Consistently Predicted Value to the Customer.
    3) Do Your Analysis and Make an Unbiased Study. When Things Were Not Going Properly, They Unbiasedly Analyzed and Then Took Their Decision.

    What Is Licious?

    Licious is a Bangalore-based e-commerce startup that operates an online meat and seafood ordering and delivery platform. 

    The company was founded in 2015 and has since expanded to operate in several cities across India. Licious offers a variety of high-quality meat and seafood products, including chicken, mutton, fish, and shellfish, that are sourced from local farms and fisheries.

    Who is the Owner of Licious?

    Licious was co-founded by two entrepreneurs, Abhay Hanjura and Vivek Gupta, in 2015. 

    Abhay Hanjura had previously co-founded an online marketplace for gardening products, while Vivek Gupta had worked for several years in the technology and finance industries. 

    Together, they saw an opportunity to revolutionize the meat and seafood industry in India by leveraging technology and a direct-to-consumer model. 

    Today, Abhay Hanjura and Vivek Gupta serve as the CEO and COO of Licious, respectively.

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