FreshToHome faces competition from players like Licious, Zappfresh, BBDaily, and Easymeat, among a handful of others in the market. In the financial year FY23, Licious experienced a modest 9.6% growth in its gross income, reaching Rs 747.7 crore from Rs 682.5 crore in FY22. However, the company’s losses remained steady at Rs 500 crore in FY23, mirroring the Rs 485 crore reported in FY22. The firm recently boasted about reaching an annual revenue run rate of $100 million, equivalent to around Rs 850 crore for FY24. Meanwhile, Zappfresh closed FY23 with revenue amounting to Rs 57 crore and managed to secure a nominal profit ranging between Rs 3-5 crore.
FreshtoHome isn’t alone in grappling with these challenges. It’s become clear that certain assumptions about the Indian market haven’t quite panned out, especially when it comes to the pricing of meat and its related products. Customers simply haven’t been willing to shell out the premium prices these companies ask for, making it difficult to establish lasting connections. As for FreshtoHome, shifting focus to the UAE might not happen on the same grand scale or with the same strategies. It’s likely they won’t invest as heavily in expanding into that market.
FreshToHome faced challenges with a slight revenue dip in FY23, but the company made significant strides by reducing losses by 22% and maintaining strong collaborations in India and the UAE. Financial prudence was evident through a 23.5% reduction in sales and marketing costs, despite a slight increase in total expenditure. The company successfully secured over $290 million in funding, marking its position for future growth. While facing competition, FreshToHome’s financial performance and strategic collaborations position it well for further expansion and success in the market.