Citykart raises ₹538 cr to expand in Tier II & III cities
In a significant development for the Indian retail sector, Citykart, a value fashion retailer, has raised ₹538 crore in its Series B funding round, led by TPG NewQuest and A91 Partners. The funding is aimed at expanding the company’s presence in Tier II and III cities, further solidifying its position in the market. This latest development is expected to have a significant impact on the retail landscape, as Citykart aims to scale its operations and backend infrastructure while maintaining profitability.
Citykart, which has already established itself with 137 stores across the country, has set a revenue target of ₹1,300 crore. The company’s decision to focus on Tier II and III cities is a strategic move, as these markets offer significant growth potential and are often underserved by established players. By expanding its presence in these regions, Citykart is well-positioned to capitalize on the increasing demand for value fashion in these markets.
The funding round saw TPG NewQuest and A91 Partners invest alongside existing investors, including Investcorp. Notably, Investcorp, an early investor in Citykart, has exited the company with a return of 4x, signaling strong sector potential. This exit is a testament to Citykart’s impressive growth trajectory and its ability to deliver returns to investors.
Citykart’s decision to focus on Tier II and III cities is driven by the company’s understanding of the market dynamics in these regions. These cities offer a significant opportunity for growth, as consumers in these areas are increasingly demanding value fashion products at affordable prices. By expanding its presence in these markets, Citykart is well-positioned to capitalize on this trend and establish itself as a leading player in the value fashion segment.
The funding raised by Citykart will be used to scale the company’s operations and backend infrastructure. This will enable Citykart to improve its supply chain efficiency, enhance its product offerings, and provide a better customer experience. Additionally, the funding will also be used to hire more talent and strengthen the company’s technology infrastructure.
Citykart’s focus on Tier II and III cities is also driven by the company’s commitment to sustainability and social responsibility. By expanding its presence in these regions, Citykart is creating employment opportunities and contributing to the local economy. The company’s efforts to promote sustainable fashion practices and reduce waste are also in line with its commitment to social responsibility.
The Indian retail sector has been growing rapidly in recent years, driven by increasing consumer spending and the rise of e-commerce. However, the sector still faces significant challenges, including competition from established players and the need for innovative business models. Citykart’s decision to focus on Tier II and III cities and its commitment to sustainability and social responsibility are key differentiators that set it apart from other players in the market.
In conclusion, Citykart’s Series B funding round is a significant development for the Indian retail sector, as the company looks to expand its presence in Tier II and III cities. With a revenue target of ₹1,300 crore and a commitment to sustainability and social responsibility, Citykart is well-positioned to capitalize on the growing demand for value fashion in these markets. The company’s decision to scale its operations and backend infrastructure will also enable it to improve its product offerings and provide a better customer experience.
Source: https://ascendants.in/funding-feed/citykart-seriesb-funding-tpg-a91-exit/
