India consumes meat worth around $30 billion every year and the demand is only expected to grow faster driven by economic growth, rising per capita income, urban trends, and a rise in the awareness of the nutrition provided by meat and related products. However, 90 percent of this demand has been primarily addressed by the unorganised market.
Abhay Hanjura, co-founder of online meat brand Licious, says when anyone talks about food processing there is a lot of science associated with it, but that didn’t seem to be the case with livestock farmers. Especially, ones in the red meat industry. He explains the red meat sector is highly unorganised, and farmers hardly make any money in the process. Licious, therefore, needed to bring in elements of technology, including a predictability engine to the supply chain processing.
The approach is what got investors hooked, says Ben Mathias, Managing Partner at Vertex Ventures, which invested in Licious in September 2018.
“We really liked the fact that Abhay and Vivek wanted to build the business the right way – ground-up with a focus on unit economics. They did not want to grow GMV at all costs but rather wanted to go city-by-city in an organised manner that did not dilute the quality of their offering and minimised unnecessary cash burn,” Ben says.