Citykart raises ₹538 cr to expand in Tier II & III cities
In a significant development, Citykart, a value fashion retailer, has raised ₹538 crore in Series B funding, led by TPG NewQuest and A91 Partners. This substantial investment will enable the company to expand its operations across Tier II and III cities, further solidifying its position in the Indian retail market.
Citykart’s latest funding round comes on the back of its impressive growth story, with the company operating 137 stores across various cities. The value fashion retailer has set its sights on achieving a revenue target of ₹1,300 crore, indicating a significant scale-up in its operations.
The funding round was led by TPG NewQuest, a global investment firm, and A91 Partners, an India-focused growth equity fund. Notably, early investor Investcorp, which had invested in Citykart’s previous rounds, exited the company with an impressive 4x return. This exit is a testament to the strong potential of the Indian retail sector, particularly in the value fashion space.
Citykart’s expansion plans are centered around scaling its operations in Tier II and III cities, where there is a significant demand for affordable and fashionable clothing. The company has identified these markets as key growth drivers, given their increasing purchasing power and changing consumer preferences.
The funding will be used to upgrade Citykart’s backend infrastructure, including its supply chain, logistics, and technology systems. This will enable the company to improve its operational efficiencies, reduce costs, and enhance the overall customer experience.
Citykart’s business model is centered around offering trendy and affordable clothing to the masses. The company has successfully created a loyal customer base by offering a wide range of products at competitive prices. Its stores are strategically located in high-traffic areas, making it convenient for customers to shop.
The value fashion segment has been gaining traction in India, driven by changing consumer preferences and increasing disposable incomes. Citykart’s focus on affordable and fashionable clothing has resonated well with consumers, particularly in Tier II and III cities.
The company’s growth strategy is centered around expanding its physical presence, improving its online capabilities, and strengthening its supply chain. Citykart is also investing in data analytics and customer insights to better understand its customers’ preferences and behavior.
The funding round is a significant milestone for Citykart, which has demonstrated its ability to scale its operations while maintaining profitability. The company’s success is a testament to its strong business model and the growing demand for value fashion in India.
In conclusion, Citykart’s Series B funding round is a significant development in the Indian retail sector, signaling the company’s plans to expand its operations across Tier II and III cities. With its strong business model, impressive growth story, and significant funding, Citykart is well-positioned to capitalize on the growing demand for value fashion in India.
Source: https://ascendants.in/funding-feed/citykart-seriesb-funding-tpg-a91-exit/
