Citykart raises Rs 538 Cr led by TPG NewQuest and A91 Partner; Investcorp exits

Citykart has raised Rs 538 crore ($63 million) in Series B funding, marking one of the biggest capital infusions in the country’s value fashion segment to date. The round was co-led by TPG NewQuest, a secondary private equity platform for Asia within TPG, and A91 Partners, a homegrown investment firm specializing in growth investments.

According to the company, about Rs 120 crore is primary capital, with the remaining Rs 418 crore allocated to secondary transactions. Investcorp, an early backer of Citykart, has made a full exit, while India SME Fund continues to hold a minority stake.

As per media reports, Investcorp invested Rs 75 crore in 2019 in Citykart’s seed round and will now exit with about Rs 280–300 crore.

The primary infusion will enable the company to accelerate expansion in both footprint and product assortment, Citykart said in a press release.

Gurugram-based Citykart has opened 12 new stores across India, bringing its total to 137 stores in 91 cities across 11 states. The brand focuses on reaching underserved, budget-conscious markets. With popular in-house labels like Athiya, Nimes, Fumee, and Remise, Citykart now serves over 15 million customers each year and plans to grow to 300 stores.

Led by Sudhanshu Agarwal, Citykart is growing at a rate of more than 40% and is aiming to reach Rs 1,300 crore in annual revenue.

Last year, Agarwal shared that accessories and general merchandise made up 22% of Citykart’s sales, while men’s wear accounted for 32%, women’s wear 24%, and kids' wear the remaining 22%.

He also added that Citykart is eyeing becoming the Primark of Tier II and Tier III cities in India. Primark is an Irish multinational fashion retailer founded by Arthur Ryan.