Citykart, a value fashion retailer, has raised ₹538 crore in a Series B funding round co-led by TPG NewQuest, a secondary private equity platform for Asia within TPG, and A91 Partners, a homegrown investment firm specialising in growth investments.
Investcorp, an early backer of Citykart, has made a full exit, while India SME Fund continues to hold a minority stake. EY India acted as the exclusive financial advisor to the transaction.
Of the total funding, about ₹120 crore is primary capital, with the remaining ₹418 crore being towards secondary transactions. The primary infusion will enable the company to accelerate expansion in both its footprint and product assortment.
Founded in 2016 by Sudhanshu Agarwal, Citykart has expanded its store network to 137 stores and now serves over 15 million customers across India. Growing at 40%+, the company is now targeting revenue of ₹1300 crore+.
With a strong portfolio of in-house brands such as Athiya, Nimes, Fumee, and Remise, Citykart now serves over 15 million customers annually. The company aims to expand to 300 stores.
Sudhanshu Agarwal, Co-Founder Citykart, said, “This new round of funding is a significant milestone in our journey. We are delighted to welcome TPG NewQuest and A91 Partners as long-term partners who believe in our vision of making affordable fashion accessible to Bharat. The capital infusion will help us grow deeper and wider, invest in innovation, and build a strong, future-ready organisation focused on scale and operational excellence. We’ve been fortunate to have had the support of Investcorp and India SME Fund in our earlier stages, their belief in our model helped us build a strong foundation.”
Bharati Agarwal of TPG NewQuest, said, “Citykart has demonstrated an exceptional ability to scale profitably in one of the most challenging and underserved segments of Indian retail. Their deep customer understanding, disciplined execution, and strong leadership team make them well-positioned to drive value fashion retail across India. We are excited to partner with them in this next phase of growth.”
Prasun Agarwal of A91 Partners, said, “We have been impressed with Citykart’s tailored value proposition for Bharat. Their commitment to operational excellence and customer-centricity resonates strongly with our investment approach. We are thrilled to partner with Citykart in building a category-defining retail business.”
Anshuman Goenka, Partner at Investcorp, said, “We believed in Sudhanshu’s vision and leadership to develop Citykart into a strong value retail franchise. This has been a very fulfilling partnership for Investcorp.”
Mitin Jain of India SME, said, “It has been a great journey with Citykart in the last 5 years. We celebrate this milestone and look forward to continued partnership.”
