Citykart, one of India’s prominent value fashion retailers, has secured ₹538 crore in its Series B funding round. TPG NewQuest and A91 Partners co-led this investment, signaling robust investor confidence in the value fashion segment. The company announced that this transaction marks one of the largest capital infusions in the Indian affordable fashion space, placing Citykart in a strong position to scale operations aggressively.
A Landmark Investment in India’s Value Fashion Segment
Citykart has disrupted the value retail sector by serving price-conscious consumers in Tier-2 and Tier-3 cities with stylish, affordable fashion. The latest funding round underscores the sector’s growing attractiveness and the investors’ belief in Citykart’s operational model. TPG NewQuest and A91 Partners, both experienced in backing high-growth enterprises, bring financial muscle and strategic insight that can help fuel Citykart’s ambitions.
This round saw the infusion of ₹120 crore as primary capital. The company will use this capital to grow its store network, expand into new geographies, enhance its logistics, and strengthen its product portfolio. The remaining ₹418 crore came through secondary transactions, which enabled early investors to exit and new backers to gain equity.
Investcorp Exits, India SME Fund Retains Stake
Investcorp, an early-stage investor in Citykart, made a complete exit during this round. The fund supported Citykart during its formative years, helping it lay the foundation for rapid scale. With this funding, Investcorp realized its investment returns and moved on to pursue new ventures.
Meanwhile, India SME Fund retained a minority stake, reaffirming its long-term confidence in Citykart’s future prospects. This continuity ensures some investor consistency, which is often crucial during major transitions.
EY India played a pivotal role in closing the deal. The firm served as the exclusive financial advisor for this Series B round and facilitated the smooth execution of the transaction.
Rapid Growth and Retail Network Expansion
Citykart has grown swiftly over the past few years. With a clear focus on Tier-2 and Tier-3 cities, the company has positioned itself as a trusted destination for affordable and trendy fashion. It now operates 137 stores across multiple states and caters to more than 15 million customers annually. This broad customer base reflects the brand’s appeal among aspiring middle-income groups in India’s non-metro markets.
Citykart plans to use the new capital to further expand its footprint. The company aims to enter new towns and deepen its presence in existing markets. This expansion will involve setting up new outlets, hiring local talent, investing in supply chain improvements, and enhancing store-level customer experiences.
Strategic Focus on Product Diversification
In addition to geographical expansion, Citykart intends to diversify its product assortment. The brand already offers a range of apparel for men, women, and children. With the new funding, the company will introduce new categories and sub-brands to cater to evolving consumer preferences.
By offering fresh, trendy products at affordable prices, Citykart hopes to enhance customer loyalty and drive repeat purchases. It also plans to strengthen its private label segment, which offers better margins and brand control. This strategy will help the company boost profitability while reinforcing its value proposition.
Revenue Growth and Target for FY26
Citykart currently grows at over 40% year-on-year. This pace of expansion places it among the fastest-growing companies in India’s retail sector. The brand’s value-centric model, coupled with a strong offline presence, has helped it scale in markets where digital-only players struggle to gain traction.
The company now targets over ₹1,300 crore in revenue, marking a significant milestone in its growth journey. If it meets this target, Citykart will solidify its standing as a leader in the value fashion segment.
To reach this revenue goal, Citykart will focus on boosting store productivity, increasing basket size, enhancing inventory efficiency, and streamlining operations. These efforts will ensure both top-line growth and long-term sustainability.
Competitive Landscape and Market Opportunity
India’s value fashion market holds massive potential. With rising disposable income, increasing urbanization, and growing fashion consciousness in smaller cities, brands like Citykart enjoy a favorable demand environment. The shift from unorganized to organized retail further boosts opportunities for structured players.
Several competitors also seek to dominate this space, including V-Mart, Reliance Trends, and Shoppers Stop’s value vertical. Despite the competition, Citykart maintains a distinct edge by deeply understanding regional preferences and maintaining strong unit economics.
Its localized merchandising strategy, cost-efficient store model, and aggressive pricing ensure that it appeals to its core audience. These advantages allow the company to compete effectively against national and regional players.
Leadership Vision and Operational Execution
Citykart’s leadership team has maintained a laser-sharp focus on scaling responsibly. The founders and top executives prioritize operational efficiency, supply chain optimization, and customer-centricity. Their execution strategy has helped Citykart scale without compromising on quality or customer satisfaction.
With the Series B funding in place, the leadership now plans to invest heavily in technology and analytics. They aim to build a more intelligent supply chain that predicts demand, reduces stock-outs, and enables faster replenishment. Technology investments will also support better customer targeting, loyalty programs, and store-level personalization.
Future Roadmap and Possible IPO
The next phase of Citykart’s journey will likely include digital integration and a push toward omnichannel retail. While its offline presence remains strong, the company will enhance its digital footprint through apps, online catalogues, and loyalty platforms.
Industry observers speculate that with continued growth and investor backing, Citykart may explore a public listing in the next 2–3 years. An IPO would help the company raise fresh capital, offer exits to current shareholders, and enhance its brand visibility.
Before reaching that stage, Citykart will need to maintain its growth momentum, improve profitability metrics, and execute flawlessly on its expansion plan.
Conclusion
Citykart has taken a significant leap forward by raising ₹538 crore in Series B funding, led by global investors TPG NewQuest and A91 Partners. The infusion of primary and secondary capital will empower the company to strengthen its retail footprint, broaden its product offerings, and continue scaling operations at a robust pace. With a clear path to ₹1,300 crore in revenue and a solid strategy for future growth, Citykart stands well-positioned to become a dominant player in India’s value fashion industry.