Licious acquires My Chicken and More to boost offline presence
What's the story
Temasek-backed meat and seafood start-up, Licious, is all set to acquire Bengaluru-based company My Chicken and More for ₹150-200 crore, as per Moneycontrol.
The agreement will be a mix of cash and equity with an earnout component included.
This strategic move comes as Licious looks to expand its offline presence in the market, which has largely been dominated by online sales till now.
Growth strategy
Acquisition to boost Licious' offline expansion plans
The acquisition of My Chicken and More, a subsidiary of Shakthi Foods, will give a major boost to Licious's omnichannel strategy.
It will also bolster the company's presence in Bengaluru, one of its biggest markets.
The firm has also announced plans to open at least 40 offline stores by the end of this fiscal year, from just four at the start.
Market impact
Acquisition to increase Licious' sales in Bengaluru
Bengaluru currently contributes to about ₹250 crore worth of sales for Licious. This number is expected to increase to ₹400 crore once the acquisition of My Chicken and More is completed.
The acquired firm, founded by S Mahesha of Shakthi Foods in 2007, runs 22 stores in Bengaluru which will now be integrated into Licious's growing retail network.
Leadership transition
My Chicken and More's founder to join Licious
As part of the merger, Mahesha will be joining Licious and will stay with the company for a minimum of four years.
Mahesha, a poultry industry veteran with over two decades of experience, began his career in 2003 at Uttara Foods and Feeds Pvt. Ltd.
He then worked with Lifeline Tender Chicken before starting My Chicken and More under Shakthi Foods.
Expansion outlook
Licious' future growth plans and market potential
Licious plans to concentrate on the top 20 cities of the country, including Kolkata and Chennai, where it is yet to establish a loyal customer base.
The company is also diversifying its offerings by venturing into newer categories like momos.
Co-founders Abhay Hanjura and Vivek Gupta are also working on a ready-to-eat category, which will feature curries and pastes as add-ons during meat purchases.