In a bid to navigate through challenging financial waters, Bengaluru-based meat-delivery company Licious has announced a strategic decision to reduce its workforce by 3 percent, resulting in the departure of approximately 80 employees. This move comes amidst efforts to streamline operations and stabilize the company’s financial standing amid revenue struggles.
Licious, founded in 2015 by Abhay Hanjura and Vivek Gupta, has garnered attention as a promising player in the food delivery industry. However, recent financial reports indicate a deviation from earlier revenue projections, signaling the need for corrective measures to realign the company’s trajectory.
The decision to downsize the workforce is part of Licious’ broader initiative to reprioritize its expenditures and optimize operational efficiency. While difficult, this move is seen as a necessary step to adapt to evolving market dynamics and enhance the company’s long-term sustainability.
The company’s revenue, which stood at Rs 706 crore in FY22, experienced a decline to Rs 700 crore in FY23, significantly below initial projections of Rs 1,500 crore. Despite concerted efforts, the onset of the new fiscal year has brought forth continued revenue challenges, prompting Licious to reassess its operational strategies and resource allocation.
Licious’ co-founder Abhay Hanjura previously highlighted societal and cultural factors impacting the company’s growth trajectory in India. These insights underscore the complex landscape within which Licious operates, necessitating agile responses to market shifts and consumer behaviors.
One of Licious’ key investors is Temasek, a prominent investment company based in Singapore. With a diversified portfolio spanning various sectors, Temasek’s support has played a pivotal role in Licious’ journey, offering strategic guidance and financial backing to fuel growth initiatives.
The workforce reduction initiative reflects Licious’ commitment to fiscal responsibility and operational resilience in the face of economic uncertainties. By optimizing its workforce and refining business strategies, Licious aims to emerge stronger and more competitive in the dynamic food delivery market.
As Licious navigates through this transitional phase, the company remains focused on delivering high-quality products and exceptional service to its customers. With a dedication to innovation and adaptability, Licious is poised to overcome current challenges and chart a course towards sustainable growth and success in the future.
Through strategic realignment and prudent decision-making, Licious endeavors to reinforce its position as a leader in the food delivery industry while staying attuned to evolving market trends and consumer preferences.