CityMall Records Impressive Growth in E-Commerce

CityMall, a grocery-led e-commerce platform catering to smaller cities and towns, has achieved a notable 25% increase in year-on-year performance for the fiscal year concluding in March 2025, with its revenue surpassing Rs 500 crore. Despite this substantial growth in operational scale, the company still faced losses in FY25.

According to its standalone financial statement from the Registrar of Companies (RoC), CityMall’s operating revenue surged to Rs 534 crore in the last fiscal year, up from Rs 427 crore recorded in FY24. Established in 2019, CityMall offers a diverse range of products, including lifestyle items, groceries, electronics, and other essential goods through a network of community resellers strategically located in tier II and III cities. The company has transitioned from a social commerce model to a grocery-led focus, emphasising private label merchandise.

Revenue Breakdown

The income generated from product sales constituted nearly 96% of CityMall’s total operating revenue, which rose by 30% to Rs 512 crore in FY25. Logistics and marketing services accounted for the remaining income. Key items like atta, sugar, oil, and ghee contributed to 39% of overall product sales, tallying Rs 210 crore in FY25. Branded food and beverages followed with earnings of Rs 85 crore, while home and personal care products brought in Rs 58 crore. Other staples and miscellaneous products cumulatively contributed an additional Rs 159 crore.

CityMall also accrued an extra Rs 17 crore from interest on deposits and investments, resulting in total income reaching Rs 551 crore in the previous fiscal year, a rise from Rs 460 crore in FY24.

Expenditures Overview

On the expenditure front, the acquisition cost of products represented the largest expense for CityMall, comprising around 72% of total costs. This expense rose by 31% to Rs 510 crore in FY25. Employee benefit expenses saw a decline of 10% to Rs 82 crore, incorporating Rs 16.5 crore related to ESOP expenses. Transportation costs remained stable at Rs 56 crore. Additionally, other expenses related to rent, cloud services, hosting, and provisions for obsolete inventory amounted to Rs 65 crore. Consequently, CityMall’s total expenses increased by over 15% year-on-year, reaching Rs 710 crore in the past fiscal year.

Financial Performance and Future Outlook

Ultimately, the company’s losses remained relatively stable at Rs 159 crore in FY25, compared to Rs 156 crore in FY24. However, CityMall’s EBITDA margin showed an improvement, reaching -30.3%, while ROCE declined to -57.46%. On a unit level, CityMall spent Rs 1.33 to generate each rupee of operating revenue in FY25. At the close of March 2025, the Gurugram-based company reported total current assets of Rs 368 crore, inclusive of Rs 57 crore in cash and bank balances.

To date, CityMall has successfully raised over $157 million in funding, including a recent $47 million Series D investment led by Accel, with contributions from Waterbridge Ventures, Elevation Capital, Norwest Capital, Citius, and General Catalyst in September of last year.