Citykart has raised INR 538 crore (about $63 million) in Series B funding. This is one of the biggest investments in India’s value fashion market so far. The funding round was led by two big investors: TPG NewQuest, a private equity group focused on Asia, and A91 Partners, an Indian investment firm that supports growing companies.
The company said that around INR 120 crore is new money going into the business, while Rs 418 crore comes from secondary transactions (selling existing shares). Investcorp, an early investor in Citykart, has fully sold its shares and exited. Meanwhile, India SME Fund still owns a small part of the company.
According to media reports, Investcorp put INR 75 crore into Citykart in 2019 during its seed funding. Now, it will leave the company and earn around INR 280 to 300 crore from its investment.
Citykart said in a press release that the new money will help them grow faster by reaching more places and offering more products.
Citykart, based in Gurugram, has opened 12 new stores across India. Now, it has a total of 137 stores in 91 cities across 11 states. The brand focuses on helping customers who want affordable options. With popular in-house brands like Athiya, Nimes, Fumee, and Remise, Citykart serves over 15 million customers each year. They plan to grow to 300 stores soon.
Citykart, led by Sudhanshu Agarwal, is growing quickly—over 40% each year—and aims to earn Rs 1,300 crore in yearly revenue.
Last year, Agarwal said that accessories and general items made up 22% of Citykart’s sales. Men’s clothing brought in 32%, women’s clothing 24%, and kids’ clothing made up the remaining 22%.
He also said that Citykart wants to become like Primark, but for smaller cities in India (Tier II and Tier III cities). Primark is a well-known fashion retailer from Ireland, started by Arthur Ryan.
Read more- Multiples Private Equity Closes $430M Continuation Fund
