CityMall, a community e-commerce startup focused on consumers in smaller towns and cities, has raised $47 million in its Series D funding round led by Accel.
The round included both equity and debt, with existing investors like Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures also taking part.
Cofounder and CEO Angad Kikla said the company raised $41 million in equity and the rest in debt. CityMall is now valued at $320 million, slightly lower than its $350 million valuation in 2022 when it raised $75 million from Norwest Venture Partners.
The fresh funding will be used to grow CityMall by strengthening its current markets, entering new regions, expanding its private label products and brand partnerships, and hiring more people.
“A lot of people are coming into ecommerce, but interestingly, the penetration of the grocery category remains extremely low, at less than 2%. Currently, the only people buying groceries online are affluent consumers in metro cities through quick commerce platforms. However, the larger mass of India is still untouched when it comes to purchasing groceries online,” said Cofounder and Chief Executive Angad Kikla.
Rachit Parekh and Pratik Agarwal, partners at Accel, said, “CityMall has built a low-cost supply chain model that makes ecommerce economically viable for India’s underserved communities and delivers true value to the mass market consumers.”
CityMall was started in 2019 by Angad Kikla, Naisheel Verdhan, and Rahul Gill. The company sells groceries, daily-use products (FMCG), electronics, fashion, and home appliances in smaller towns (Tier III and IV).
It runs like a marketplace where community leaders (resellers) collect bulk orders from CityMall and deliver them to local customers. The app is available on Google Play and the App Store.
Currently, CityMall operates in over 60 cities across Delhi NCR, Uttar Pradesh, Haryana, Uttarakhand, and Bihar. It has doubled its growth year after year.
In FY24, CityMall’s operating revenue went up 21.3% to ₹427 crore from ₹352 crore in FY23. Most of this came from product sales, which contributed ₹391.57 crore (91.7%). However, its net loss also increased by 9.6%, reaching ₹159 crore compared to ₹145 crore last year.
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