Citykart Secures Rs 538 Crore in Series B Funding

Citykart has successfully raised Rs 538 crore ($63 million) in Series B financing, representing one of the largest investments in the country’s value fashion landscape to date. This funding round was co-led by TPG NewQuest, a secondary private equity platform focused on Asia within TPG, alongside A91 Partners, a local investment firm that specializes in growth investments.

Investment Details

According to the company, approximately Rs 120 crore constitutes primary capital, while the remaining Rs 418 crore is allocated to secondary transactions. Investcorp, an initial investor in Citykart, has exited completely, whereas India SME Fund retains a minor stake in the company.

Media reports indicate that Investcorp invested Rs 75 crore during Citykart’s seed round back in 2019, and is now exiting with an estimated return of around Rs 280–300 crore.

Impact of Funding on Expansion

This primary infusion will facilitate the company’s ambition to accelerate its expansion, both in terms of geographic footprint and product assortment, as stated in a press release. Citykart has recently opened 12 new stores across India, marking a total of 137 stores in 91 cities spanning 11 states. The brand is dedicated to reaching underserved, budget-conscious customers.

Product Range and Customer Base

With its popular in-house brands such as Athiya, Nimes, Fumee, and Remise, Citykart now serves over 15 million customers annually and is on track to grow its store count to 300. Under the leadership of Sudhanshu Agarwal, Citykart is experiencing impressive growth of over 40%, with a target of achieving Rs 1,300 crore in annual revenue.

Sales Breakdown and Future Vision

Last year, Agarwal disclosed that accessories and general merchandise contributed to 22% of Citykart’s sales, while men’s wear accounted for 32%, women’s wear 24%, and kids’ wear made up the remaining 22%. Furthermore, he mentioned that Citykart aims to establish itself as the Primark for Tier II and Tier III cities in India. Primark is a well-known Irish multinational fashion retailer founded by Arthur Ryan.