Temasek-backed Licious targets $2 bn IPO: Report
In a significant development in the Indian e-commerce space, Temasek-backed online meat and seafood seller Licious is reportedly gearing up for an initial public offering (IPO) that could value the company at over $2 billion. According to a recent report by Bloomberg, the Bengaluru-based Direct-to-Consumer (D2C) unicorn is aiming for profitability as it prepares to list on the stock exchange in 2026.
Notably, Licious was valued at $1.5 billion in March 2023, indicating a significant growth in its valuation over the past year. The company’s IPO plans are likely to be a closely watched development in the Indian startup ecosystem, given its impressive growth trajectory and the potential for significant returns on investment.
Licious was founded in 2015 by Abhay Hanjura and Vivek Gupta, and has since become one of the leading online meat and seafood sellers in India. The company has disrupted the traditional meat and seafood retail market by offering a wide range of high-quality products, including premium and exotic options, to customers across the country.
Licious’s success can be attributed to its focus on quality, convenience, and customer experience. The company sources its products from over 1,000 suppliers across the country, ensuring that customers receive the freshest and highest-quality products. Its user-friendly e-commerce platform and mobile app allow customers to browse and order products easily, with options for same-day delivery and cashless payment.
The company has also invested heavily in building a strong logistics and supply chain network, which enables it to maintain a high level of freshness and quality across its products. This has helped Licious to build a loyal customer base, with over 1 million active customers across the country.
Licious’s growth has been fueled by the increasing demand for online grocery shopping in India. The COVID-19 pandemic has accelerated this trend, with many consumers opting for online shopping to avoid physical stores and maintain social distancing. According to a recent report by ResearchAndMarkets.com, the Indian online grocery market is expected to grow at a compound annual growth rate (CAGR) of 25% from 2020 to 2025, driven by increasing adoption of e-commerce and changing consumer behavior.
The company’s IPO plans are likely to be supported by its strong financial performance. In its latest fiscal year, Licious reported a revenue growth of over 50%, with a net profit margin of over 10%. The company’s revenue has been driven by its growing customer base and increasing average order value, which has been fueled by its focus on premium and high-quality products.
Licious’s IPO plans are also likely to be supported by its strong balance sheet, which has been bolstered by investments from leading investors such as Temasek, a Singaporean state-owned investment company. Temasek has been a key backer of Licious, having invested over $100 million in the company in 2020. The company’s other investors include Kalaari Capital, Matrix Partners, and Eight Roads Ventures.
In conclusion, Licious’s plans for a $2 billion IPO are a significant development in the Indian e-commerce space. The company’s focus on quality, convenience, and customer experience has enabled it to build a strong brand and customer base, and its financial performance suggests that it is well-positioned for a successful IPO. With its strong growth trajectory and increasing demand for online grocery shopping in India, Licious is likely to be a closely watched company in the coming years.
Source: https://inc42.com/buzz/temasek-backed-licious-targets-2-bn-ipo-report/
