Citykart, one of India’s fastest-growing value fashion retailers, has raised ₹538 crore (approximately $63 million) in its Series B funding round. The round was co-led by global private equity firm TPG NewQuest and homegrown growth investor A91 Partners, signaling growing investor confidence in India’s budget fashion market. This is one of the most significant capital infusions in the affordable fashion segment in recent years, and it sets the stage for Citykart’s next phase of aggressive expansion.
Credits: Ascendants
In this article, we will explore Citykart’s funding journey, growth strategy, and its vision to redefine value fashion in India.
A Strategic Funding Mix: Fuel for Growth
The funding round includes ₹120 crore in primary capital, which Citykart plans to use for expanding its footprint into new cities and improving operational infrastructure. The remaining ₹418 crore comes from secondary transactions, allowing early investor Investcorp to exit fully.
Investcorp had invested ₹75 crore in 2019 and has now exited with ₹280–300 crore, delivering a 4x return—a testament to the brand’s steady performance and market promise. India SME Fund, another early-stage investor, has chosen to retain a minority stake. EY India acted as the sole financial advisor to the transaction.
Serving Bharat: The Heartland Fashion Giant
Founded in 2015 by Sudhanshu Agarwal, Citykart has built its success by targeting the vast and largely untapped demand for affordable fashion in Tier II and Tier III cities. The retailer currently operates 137 stores across 91 cities in 11 states, primarily in Uttar Pradesh and Bihar.
Citykart plans to scale up to 300 stores in the coming years, with expansion plans focused on Rajasthan, Odisha, Assam, and Jharkhand. This growth strategy aligns with the company’s vision to become the “Primark of Tier II and Tier III India.”
Products That Click with the Masses
Citykart serves more than 15 million customers annually with a wide range of products tailored to budget-conscious shoppers. Its in-house brands—Athiya, Nimes, Fumee, and Remise—have been particularly successful, offering quality and style at average selling prices of around ₹300.
Sales are balanced across multiple categories:
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Men’s wear: 32%
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Women’s wear: 24%
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Kids’ wear: 22%
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General merchandise & accessories: 22%
With a strong focus on curation and localized demand, Citykart has managed to achieve 17% same-store sales growth (SSSG), driven by increasing footfalls and improved conversion rates.
Financial Performance: Profitable and Scaling Fast
Unlike many fast-scaling retailers that burn cash, Citykart has maintained profitability for five consecutive years. The company is expected to surpass ₹900 crore in revenue in FY25, and it is targeting ₹1,300 crore in the current fiscal year.
Citykart’s robust performance is supported by enhancements in inventory planning, tech-enabled supply chain management, and strategic expansion. Investments from this round will be channeled into building better backend infrastructure, such as warehouses and logistics systems, to support its next leap forward.
A Vote of Confidence from Investors
The co-leads of the Series B round bring complementary strengths:
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TPG NewQuest specializes in secondary investments across Asia and sees Citykart as a proven platform ready for national scale.
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A91 Partners, known for backing scalable consumer brands like Digit and Sugar Cosmetics, sees Citykart as a high-potential player with clear unit economics and customer love.
“We are excited to partner with Citykart as they continue to transform access to fashion in emerging Indian cities,” said a spokesperson from A91 Partners.
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Credits: Business Standard
Conclusion: Ready to Lead India’s Value Fashion Revolution
Citykart is not just selling clothes—it’s creating access, aspiration, and affordability for millions of Indians outside metro cities. With a compelling business model, proven profitability, and a rapidly expanding store network, the company is well on its way to becoming an iconic brand for Bharat.
As India’s middle class rises and smaller towns crave fashion-forward but affordable products, Citykart’s growth story is only just beginning.
