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    Licious eyes $80 million in funding at $800 million valuation

    Synopsis

    TPG, General Atlantic, PremjiInvest and Multiples Alternate Asset Management are in talks to invest in the Vertex and 3one4 Capital-backed company.

    liciousETBrandEquity
    Mumbai: Gourmet meat startup Licious is eyeing $80 million in capital at a valuation of $800 million, sources close to the development said, in a round that will see new as well as existing investors participate.
    TPG, General Atlantic, PremjiInvest and Multiples Alternate Asset Management are in talks to invest in the Vertex and 3one4 Capital-backed company, the sources said.

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    “The company is looking to raise primary capital to fund its business expansion,” a person with knowledge of the development said. Investment bank Avendus Capital has been asked to scout for investors. “Existing investors will also invest in this round,” said another person.

    “As an organization, Licious does not comment on market speculations,” a company spokesperson told ET in an email. TPG, Multiples Alternate Asset Management, General Atlantic and Premji Invest did not respond to emails seeking comment.

    Founded in 2015 by Vivek Gupta and Abhay Hanjura, Licious has entered the ready-to-eat market after establishing a presence in the meat and seafood segments.

    In late 2019, the company raised $30 million in a Series E round, led by Singapore-based Vertex Growth Fund with participation from existing investors 3one4 Capital, Bertelsmann India Investments, Vertex Ventures Southeast Asia and India, and Sistema Asia Fund.

    Over the last eight months, business has grown by 300%, according to the company.

    “The company saw a 3X surge in demand across product categories and markets with the average basket size per customer growing by 30%,” the spokesperson for Licious said.

    Licious is present in Bengaluru, Hyderabad, Chennai, Coimbatore, Delhi-NCR, Chandigarh, Mumbai, Pune and Jaipur. It delivers more than 1 million orders each month across all markets.

    According to industry data, 92% of the Indian meat and seafood industry is unorganised, indicating the huge, under-served community that exists as well as the opportunity that this sector has to offer. India consumes meat worth around $30 billion each year.

    There has been growing investor interest in the on-demand food segment, especially in the meat and seafood category.

    Licius competes with companies such as ZappFresh and Fresh to Home, which are also backed by investors.

    In October last year, Fresh to Home raised $121 million in its Series C round, led by Investment Corporation of Dubai (ICD), Ascent Capital and the US Government’s development finance institution - DFC, the Allana Group and other investors.

    Zappfresh is also in the process of raising around Rs 100 crore from investors to expand its business.
    The Economic Times

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