Citykart Raises ₹538 Cr to Expand in Tier II & III Cities
In a significant development in the Indian retail sector, Citykart, a value fashion retailer, has secured ₹538 crore in Series B funding led by TPG NewQuest and A91 Partners. The funding round, which also saw the exit of early investor Investcorp with a 4x return, will enable Citykart to scale its operations and expand its footprint in Tier II and III cities.
With a revenue target of ₹1,300 crore, Citykart is poised to become a major player in the Indian retail market. The company’s vision is to democratize fashion and make it accessible to a wider audience by setting up stores in smaller cities and towns. Currently, Citykart operates 137 stores across India, and the new funding will be used to further accelerate its expansion plans.
Citykart’s business model is built around offering trendy and affordable fashion products to customers in smaller cities and towns. The company’s stores offer a range of products, including clothing, accessories, and home furnishings, at competitive prices. Citykart’s focus on value fashion has resonated well with customers in Tier II and III cities, who are looking for affordable and stylish products.
The funding will be used to scale Citykart’s operations, including setting up new stores, strengthening its backend infrastructure, and enhancing its technology platform. The company has been profitable since its inception, and the new funding will enable it to maintain its profitability while expanding its operations.
Investcorp, an early investor in Citykart, exited the company with a 4x return, signaling strong potential in the value fashion retail sector. The exit is a testament to the company’s growth potential and the confidence that investors have in its business model.
Commenting on the funding, a Citykart spokesperson said, “We are thrilled to have secured this significant funding round, which will enable us to accelerate our expansion plans and strengthen our presence in Tier II and III cities. Our focus on value fashion has resonated well with customers in these cities, and we are confident that our business model has the potential to scale significantly.”
The funding round is a significant development in the Indian retail sector, which has been witnessing a shift towards online shopping in recent years. However, Citykart’s focus on physical stores and value fashion products has enabled it to capitalize on the growth potential in smaller cities and towns.
Citykart’s expansion plans are well-timed, given the growing demand for affordable and stylish products in Tier II and III cities. The company’s focus on value fashion is likely to benefit from the growing middle-class population in these cities, who are looking for affordable and fashionable products.
In conclusion, Citykart’s ₹538 crore Series B funding round is a significant development in the Indian retail sector, and a testament to the company’s growth potential. With its focus on value fashion and expansion plans in Tier II and III cities, Citykart is well-positioned to become a major player in the Indian retail market.
Source: https://ascendants.in/funding-feed/citykart-seriesb-funding-tpg-a91-exit/
