Citykart Raises ₹538 Cr to Expand in Tier II & III Cities
The Indian retail landscape is witnessing a significant shift, with value fashion retailers like Citykart making a beeline for Tier II and III cities. The company has raised a whopping ₹538 crore in Series B funding, led by TPG NewQuest and A91 Partners, to fuel its expansion plans. This development signals a significant vote of confidence in the sector’s potential, with early investor Investcorp exiting with an impressive 4x return.
Founded in 2014, Citykart has been on a mission to democratize fashion for the masses. The company’s store count has grown to 137, with a revenue target of ₹1,300 crore. To achieve this ambitious goal, Citykart is scaling its operations, backend infrastructure, and team. The funding will enable the company to maintain profitability while expanding its reach across Tier II and III cities.
Citykart’s focus on Tier II and III cities is a strategic move, as these markets offer immense growth potential. According to a report by Assocham, the Indian retail market is expected to reach ₹64 trillion by 2027, with Tier II and III cities accounting for a significant chunk of this growth. By targeting these markets, Citykart is positioning itself to capitalize on this trend and become a leading player in the Indian retail landscape.
The Series B funding round, which values Citykart at over ₹4,000 crore, is a significant milestone for the company. TPG NewQuest, a global investment firm, and A91 Partners, a leading Indian growth equity investor, have joined the company’s cap table. This development is a testament to the growing interest in the Indian retail sector, with investors recognizing the potential for growth and scalability.
Investcorp, an early investor in Citykart, has exited the company with a 4x return, underscoring the strong potential of the sector. This exit is a significant milestone for Citykart, demonstrating the company’s ability to deliver returns for investors. The exit also highlights the confidence that investors have in Citykart’s business model and growth prospects.
Citykart’s focus on value fashion has been a key factor in its success. The company offers a range of products, from casual wear to formal wear, at affordable prices. This approach has resonated with customers, who are seeking fashion at an affordable price point. Citykart’s supply chain and logistics infrastructure are designed to ensure that products are delivered quickly and efficiently, further enhancing the customer experience.
The company’s expansion plans are centered around scaling its operations, backend infrastructure, and team. Citykart is investing in technology to streamline its operations, improve customer service, and enhance the overall shopping experience. The company is also strengthening its supply chain and logistics capabilities to ensure that products are delivered quickly and efficiently.
Citykart’s growth strategy is centered around a multi-channel approach, with the company operating both online and offline channels. The company has a strong e-commerce platform, which offers customers the convenience of shopping from the comfort of their own homes. Citykart is also expanding its offline presence, with a focus on opening new stores in Tier II and III cities.
The funding round is a significant boost to Citykart’s growth plans, enabling the company to accelerate its expansion plans. The company plans to use the funds to scale its operations, strengthen its supply chain and logistics capabilities, and enhance its technology infrastructure.
Citykart’s success is a testament to the growing demand for value fashion in India. The company’s focus on Tier II and III cities is a strategic move, as these markets offer immense growth potential. With a strong business model, a scalable infrastructure, and a talented team, Citykart is well-positioned to become a leading player in the Indian retail landscape.
As the Indian retail landscape continues to evolve, Citykart is poised to play a significant role. The company’s focus on value fashion, combined with its expansion plans in Tier II and III cities, makes it an attractive investment opportunity. With a strong track record of growth and profitability, Citykart is a company to watch in the Indian retail sector.
Source: https://ascendants.in/funding-feed/citykart-seriesb-funding-tpg-a91-exit/
