Whalesbook
Key Players' Financial Journeys
Omnichannel meat and seafood startups in India are experiencing significant revenue growth, but their paths to profitability differ greatly. Licious ended FY26 with ₹1,166 crore in net revenue, a 47% jump from the previous year, and aims for ₹1,800 crore in FY27. The company focuses on expanding within core areas and encouraging repeat business, which now makes up 94% of its sales. Licious reported ₹187 crore in EBITDA losses for FY26, an increase from ₹168 crore in FY25, due to investments in infrastructure and offline stores.
In contrast, TenderCuts, based in Chennai, has become profitable. It secured $2 million in debt from Lakme Finance and claims to be the first in its category to achieve positive EBITDA at both the store (10%) and company levels. This success stems from a focus on efficient operations and retaining customers, with 85% of orders coming from repeat buyers. This lean model allows TenderCuts to scale using debt rather than selling more equity.
FreshToHome is reportedly seeking around ₹135 crore in debt across two funding rounds. This indicates a continued need for capital to manage its operations and growth. The company reported ₹421.33 crore in revenue for FY25, with its losses remaining largely unchanged.
Zappfresh's Stock Market Debut
The parent company of Zappfresh, DSM Fresh Foods, recently went public on the BSE SME platform. It listed at ₹120 per share, a 20% premium over its initial public offering price. This listing offers a benchmark valuation for the sector. DSM Fresh Foods, which operates the Zappfresh brand, reported ₹130 crore in revenue and ₹9 crore in net profit for FY25. For the first half of FY26, it recorded ₹97 crore in operating revenue with ₹7 crore in profit after tax. As of April 12, 2026, its market capitalization was ₹245 crore, with a price-to-earnings ratio of about 17.7. This profitable public debut stands in contrast to the high-spending models of some rivals and suggests investor interest in companies with disciplined growth strategies. DSM Fresh Foods has a promoter holding of 28.1%.
The Cost of Cold Chains
Operating in the fresh meat and seafood sector requires substantial capital investment, especially for cold chain infrastructure and logistics. India's cold chain market is expected to grow to ₹3,79,870 crore by 2028, with a compound annual growth rate of 12.3%, highlighting the sector's infrastructure demands. While government programs like the Pradhan Mantri Kisan Sampada Yojana (PMKSY) support expansion, the high inherent costs mean companies pursuing rapid growth, such as Licious, continue to invest heavily.
The online grocery market in India is projected to reach $101.99 billion by 2034, growing at 24.36% annually. However, many consumers still prefer buying fresh produce and non-vegetarian items in physical stores. This creates a dual challenge: securing online market share while managing the costs of maintaining product quality across extensive supply chains.
Balancing Growth and Profitability
The varying financial results highlight the sector's main challenge: finding a balance between aggressive market share growth and sustainable profitability. Licious's impressive revenue increase is matched by widening EBITDA losses, a strategy that aims for scale but carries execution risks and funding needs. TenderCuts' profitability and debt-funded growth, along with DSM Fresh Foods' (Zappfresh) successful public listing as a profitable business, show alternative, more capital-efficient approaches. Companies like FreshToHome relying on debt financing also indicate a constant need to bridge operational expenses and revenue, which could limit future strategic options.
Looking Ahead
Licious plans to reach ₹1,800 crore in revenue by FY27, signaling continued expansion efforts. The overall Indian food technology market is expected to expand significantly, driven by increasing digital adoption and demand for convenient food options. Ultimately, success in this sector will likely depend on companies' ability to manage capital-intensive operations while showing a clear path to profitability, similar to the approaches seen with TenderCuts and DSM Fresh Foods.