CityMall, a social e-commerce startup focused on serving smaller cities and towns, posted strong financial growth in the fiscal year ending March 2024, with its gross revenue crossing ₹420 crore. The company recorded a 23% year-on-year increase, with gross merchandise value (GMV) reaching ₹427 crore in FY24, up from ₹346.4 crore in FY23, as per its financial filings with the Registrar of Companies (RoC).
Operating on a community reseller model, CityMall enables local sellers in Tier II and III cities to distribute lifestyle products, groceries, and daily essentials. Product sales remained the company’s primary revenue driver, contributing 91.62% of total operating revenue. The revenue from product sales rose 17.1% to ₹391.5 crore, while the remaining ₹35.8 crore came from logistics and marketing services.
Continue Exploring: The End of a Retail Era: Neville Noronha Checks Out, Anshul Asawa Checks In
Beyond its core operations, CityMall generated ₹32 crore in additional income from interest on deposits and investments, bringing its total income to ₹459 crore for the year—an improvement from ₹378 crore in FY23.
Rising Costs and Increased Losses
CityMall’s procurement costs formed its largest expenditure, increasing 20.4% to ₹390 crore. Meanwhile, employee benefit expenses rose 7.7% to ₹91 crore, and transportation costs saw a sharp 45.5% spike to ₹56 crore. In total, CityMall’s overall expenses climbed 17.7%, reaching ₹615.2 crore, compared to ₹522.7 crore in the previous fiscal year.
Continue Exploring: NONSTOP launches first flagship store in Mumbai, offering mobility and wellness solutions
Despite revenue growth, the company reported a wider loss of ₹159 crore, up 10% from ₹145 crore in FY23. CityMall’s Return on Capital Employed (ROCE) stood at -36.18%, while its EBITDA margin was -30.34%. On a per-unit basis, the company spent ₹1.44 to earn ₹1 in operating revenue.
As of March 2024, CityMall’s total current assets stood at ₹427 crore, which included ₹187 crore in cash and bank balance.
Competitive Landscape
CityMall has raised over $110 million in funding so far, including a $75 million Series C round led by Norwest Venture Partners in March 2022. Elevation Capital is currently its largest external stakeholder, followed by Accel and Jungle Ventures, according to startup data platform TheKredible.
In comparison, DealShare, one of CityMall’s biggest competitors, faced a 75% drop in gross revenue in FY24, though its losses shrank by 66% during the same period.
With rising operational costs but steady revenue growth, CityMall continues to navigate the challenging yet expanding social commerce market in India’s smaller cities.