Citykart, the fast-growing value fashion retailer, has raised Rs 538 crore in its Series B funding round. The round was led by TPG NewQuest and A91 Partners.
This is one of the largest private equity investments in the value retail sector. Citykart plans to use this fundraise to expand its operations and deepen its presence across India.
Founded by Sudhanshu Agarwal, Citykart focuses on value fashion for customers in India’s Tier II and III cities.
The retailer has quickly grown, now operating 137 stores in 91 cities across 11 states. Every year, Citykart serves over 15 million customers, catering to aspirational buyers in underserved markets.
So, what does this mean for the average shopper? More stores in smaller towns, better access to affordable, trendy clothes, and a boost in local economies. Citykart’s growth shows that value fashion is not just a big city game anymore.
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The funding round included Rs 120 crore as new capital for business growth. Another Rs 418 crore came from secondary transactions, where some early investors sold their stakes.
Notably, Investcorp, an early backer, completely exited. Meanwhile, India SME Fund still holds a minority stake.
This shift in investors points to growing confidence in Citykart’s future. EY India acted as the exclusive financial advisor for this deal, adding credibility to the transaction.
Citykart aims to reach over Rs 1,300 crore in annual revenue and maintain a growth rate above 40 percent. That’s an ambitious target, but one that looks possible given their current momentum.
To put it simply: Citykart is making value fashion available to millions who often miss out on the latest trends. It’s like bringing the shopping mall experience to towns that usually rely on local markets.
In an era when online shopping is booming, Citykart’s focus on physical stores in smaller cities might seem old-fashioned. But that’s the secret sauce. Customers in these areas want affordable fashion with a personal touch — and Citykart delivers that.
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