Citykart raises ₹538 cr to expand in Tier II & III cities
In a significant development in the Indian retail landscape, Citykart, a value fashion retailer, has secured ₹538 crore in Series B funding. The round was led by TPG NewQuest and A91 Partners, with early investor Investcorp exiting with a whopping 4x returns. This latest development marks a significant milestone for Citykart, which is now poised to expand its operations across Tier II and III cities, further solidifying its presence in the Indian market.
Scaling operations across Tier II and III cities
With this fresh injection of capital, Citykart aims to scale its operations across Tier II and III cities, where there is a growing demand for affordable fashion. The company currently operates 137 stores across the country and is targeting a revenue of ₹1,300 crore in the near future. To achieve this ambitious target, Citykart will be focusing on strengthening its backend infrastructure, including logistics and supply chain management, while simultaneously expanding its store footprint.
Profitability remains a key focus
Despite its aggressive expansion plans, Citykart remains committed to maintaining profitability. The company has built a reputation for its value-for-money offerings, which have resonated well with customers across the country. By maintaining its focus on profitability, Citykart is ensuring that it can sustain its growth momentum over the long term.
Early investor exits with significant returns
Investcorp, an early investor in Citykart, exited the company with a substantial 4x return on its investment. This exit serves as a testament to the strong potential of the value fashion retail sector in India. The successful exit of Investcorp also underscores the confidence that investors have in Citykart’s business model and its ability to scale operations sustainably.
TPG NewQuest and A91 Partners lead the funding round
TPG NewQuest, a leading global investment firm, and A91 Partners, a prominent Indian venture capital firm, led the Series B funding round. TPG NewQuest has a strong track record of investing in Indian consumer-facing businesses, and its involvement in Citykart’s funding round is a significant vote of confidence in the company’s growth prospects.
A91 Partners brings expertise in scaling businesses
A91 Partners, which has invested in several successful Indian consumer brands, brings valuable expertise in scaling businesses to Citykart. The firm’s involvement in the funding round will help Citykart accelerate its growth momentum and scale its operations more efficiently.
Growing demand for affordable fashion
The Indian fashion retail market has been growing rapidly in recent years, driven by increasing disposable incomes, changing consumer preferences, and the rise of e-commerce. The demand for affordable fashion, in particular, has been driving growth in the market, with consumers seeking value-for-money offerings that meet their style and quality expectations.
Citykart’s value proposition
Citykart’s value proposition has resonated well with Indian consumers, who are seeking affordable fashion options that are both trendy and of high quality. The company’s focus on providing high-quality products at affordable prices has enabled it to build a loyal customer base across the country.
Conclusion
Citykart’s successful Series B funding round, led by TPG NewQuest and A91 Partners, marks a significant milestone in the company’s journey. With a fresh injection of capital, Citykart is poised to expand its operations across Tier II and III cities, further solidifying its presence in the Indian market. The company’s commitment to maintaining profitability, while scaling its operations, is a testament to its long-term sustainability. As the Indian fashion retail market continues to grow, Citykart is well-positioned to capitalize on the opportunities that lie ahead.
Source: https://ascendants.in/funding-feed/citykart-seriesb-funding-tpg-a91-exit/
