Social commerce company CityMall has raised $22.5 million as part of its Series B investment round led by General Catalyst and Jungle Ventures with participation from existing investors Accel, Elevation Capital and WaterBridge Ventures.
According to CityMall, it will use the fresh funds towards hiring, technology and building its own logistics network, including warehouses and hubs. The company is also planning to strengthen its presence in the existing 40 towns in its network and aims to expand its reach to 100 new towns in the coming months.
Entrackr had exclusively reported CityMall’s potential fundraise last month.
CityMall, founded in 2019 by Angad Kikla and Naisheel Verdhan, sells over 3,000 products in the lifestyle, grocery and other categories through a network of community resellers in tier II and III cities. The company claims to have around 20,000 resellers on its platform that serves over 2 lakh consumers in eight smaller cities across the state of Haryana.
Before this, in March 2021, CityMall had raised $11 million in Series A funding, led by Accel Partners, with participation from existing investors Elevation Capital and WaterBridge Ventures. In May 2020, it had raised a $3 million seed round.
Since the beginning of this year, social commerce companies have been getting significant investments from growth stage backers who are looking for long term bets in the e-commerce space.
CityMall’s closest rival DealShare is set to raise $100 million led by Tiger Global. Last month, the New York-based fund’s Scott Shleifer and Chase Coleman picked up a 0.5% stake each in DealShare.
SoftBank had led a $300 million round in the segment’s poster child Meesho in April 2021. Earlier this month, one of the early startups in this space, Shop101, was acquired by mobile ad services platform InMobi Group in an undisclosed deal.