Licious, renowned for its online-only meat and seafood offerings, is set to expand its footprint with the acquisition of My Chicken and More, a company operating a chain of 22 offline stores in Bengaluru. The deal valued between Rs 150-200 crore, will involve a combination of cash and equity, alongside an earnout component, as per an exclusive by Moneycontrol.
This acquisition aligns with Licious’s strategy to diversify its business model amid a growing consumer preference for purchasing meat from physical stores. Notably, Licious aims to open at least 40 offline locations by the end of the current fiscal year, a significant increase from just four stores at the beginning of the year.
The deal with My Chicken and More not only accelerates this expansion but also enhances Licious’s presence in Bengaluru, a key market accounting for approximately Rs 250 crore in sales. This figure is expected to soar to Rs 400 crore post-acquisition, contributing nearly 50% to Licious’s annual revenue run rate of around Rs 800 crore ($100 million).
My Chicken and More, founded by S Mahesha in 2007 as a subsidiary of Shakthi Foods, reported revenues of Rs 100-110 crore with a modest EBITDA margin of 2-3%.
As part of the merger, S Mahesha will join Licious and remain with the company for at least four years, leveraging his extensive experience in the poultry industry.
The acquisition is set against a backdrop of intensifying competition among meat companies, with players like Licious, Nandus, and Venkys vying for market dominance. with Indian households representing a total addressable market of 30 million for meat products, Licious has only tapped into 4 million so far, indicating significant room for growth.
Abhay Hanjura, co-founder of Licious, had earlier told Moneycontrol the potential for increasing meat consumption in India, where average daily meat intake stands at just 30 grams compared to the global average of 150 grams.
Looking ahead, Licious plans to target the top 20 cities in India, including Kolkata and Chennai, while also expanding its product range to include items like momos and read-to-eat curries, aiming to boost average order values (AOVs) from the current Rs 600.
With a robust capital position of $100 million, Licious is well-prepared for its expansion plans without immediate need for additional funding, although it anticipates a pre-IPO round by 2026.
Founded in 2015 by Vivek Gupta and Abhay Hanjura, Licious has quickly established itself as a leading player in the fresh animal protein sector, having raised approximately $490 million to date, including a recent $150 million funding round that valued the company at $1.5 billion.