Citykart, the fast-growing value fashion chain that’s been quietly conquering India’s tier-II and tier-III cities, has just pulled in ₹538 crore in a new funding round. The round was co-led by TPG NewQuest and A91 Partners and includes ₹120 crore in fresh capital and ₹418 crore in secondary share sales. With this raise, insiders say the Gurgaon-based retailer’s valuation is now brushing the ₹1,400 crore mark.
The new funds will help fuel Citykart’s expansion into newer territories — including Rajasthan, Jharkhand, Odisha, and Assam — where it aims to recreate the retail playbook it nailed in Uttar Pradesh and Bihar. The company currently operates 137 stores and has its sights set on adding 40 to 50 more each year.
Continue Exploring: “Kuch Nahi Hoga”—Anupam Mittal Challenges This Dangerous Mindset in Policy Bazaar’s New Ad
Founder and MD Sudhanshu Agarwal emphasized that the focus isn’t just on rapid growth. “We’re testing out new formats in peri-urban areas around Delhi and Gurugram while staying disciplined about profitability,” he said.
This round also marks a significant shift in the cap table. Bahrain-headquartered Investcorp, which came onboard after acquiring IDFC Alternatives in 2019, has fully exited, reportedly clocking a 4x return on its investment. India SME Investments has also partially cashed out, selling half of its stake. With these changes, TPG NewQuest now becomes Citykart’s largest institutional shareholder, followed by A91 Partners and India SME.
Citykart’s business momentum has been strong — its revenue has jumped 70% over the last two years and is expected to top ₹1,300 crore in FY26, up from ₹900 crore-plus in FY25. Despite this impressive growth, Citykart remains conservatively valued at 1.5x FY25 revenue — much lower than listed competitors like VMart (2x) or Vishal Mega Mart (5.4x), the latter having a broader product basket that includes groceries.
Continue Exploring: Lahori Beverages Nears ₹450 Crore Fundraise as Valuation Soars to ₹2,500 Crore – A New Challenger in India’s Booming Drinks Market
When asked about going public, Agarwal played it cool. “An IPO is definitely in the pipeline,” he said in an interview with The Economic Times, “but it’s not something we’re chasing in the short term. For now, we’re focused on doubling our revenue and strengthening our bottom line.”
