Funding to Accelerate Expansion Across Tier II and III Markets as Company Eyes ₹1,300 Crore Revenue Mark

Citykart, one of India’s fastest-growing value fashion retailers, has raised ₹538 crore (approximately $63 million) in its Series B funding round, co-led by global private equity firm TPG NewQuest and homegrown growth investment firm A91 Partners. This round marks one of the most significant capital infusions in India’s budget apparel segment in recent years.

Funding Structure and Strategic Backing

The latest investment involved ₹120 crore in primary funding for the purpose of increasing the company’s expansion, whether into new markets or areas. The remaining ₹418 crore covers secondary purchases, with the early investor Investcorp able to exit completely.

Investcorp, which had invested ₹75 crore in Citykart’s seed round in 2019, exits with an estimated return of ₹280–300 crore, generating a strong fourfold return on investment. India SME Fund, another early backer, continues to hold a minority stake.

EY India served as the sole financial advisor to the deal.

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A Strong Footprint Across India’s Heartland

Founded in 2015 by Sudhanshu Agarwal, Citykart operates in the affordable fashion space with a focus on underserved Tier II and Tier III markets. With this funding, the company aims to expand its footprint significantly beyond its existing strongholds in Uttar Pradesh and Bihar.

As of May 2025, Citykart has 137 stores spread across 91 cities in 11 Indian states. The company recently added 12 new stores to its network and plans to scale up to 300 stores over the next few years. Expansion is being planned in states such as Rajasthan, Odisha, Assam, and Jharkhand.

Diverse Product Portfolio and Strong Consumer Base

Citykart caters to over 15 million customers annually and boasts a broad merchandise mix. Its in-house labels—Athiya, Nimes, Fumee, and Remise—have gained popularity for delivering quality fashion at value prices.

According to the company, sales are distributed across men’s wear (32%), women’s wear (24%), kids’ wear (22%), and general merchandise and accessories (22%). With an average selling price of ₹300, the company has managed to maintain strong unit economics while catering to price-sensitive consumers.

Same-store sales growth (SSSG) stands at 17%, driven by a 7–10% increase in footfalls and better conversion rates. Improved inventory planning and curated product assortments have also contributed to the uptick.

Financial Growth and Future Vision

Citykart has seen exceptional revenue growth over the past two years. The company is expected to cross ₹900 crore in revenue in FY25 and is targeting ₹1,300 crore in annual revenue in the ongoing fiscal year. It has maintained profitability over the past five years—a rare feat in the value retail segment.

The company’s strategic focus includes improving backend infrastructure such as warehouses, inventory management, and supply chains to support its ambitious growth trajectory.

Founder and CEO Sudhanshu Agarwal envisions Citykart as the “Primark of Tier II and Tier III India,” referring to the Irish multinational retail chain known for stylish, low-cost apparel. “We are building a platform that brings affordable, trendy fashion to the masses without compromising on quality,” he said.

Investor Confidence Reflects Sector Growth Potential

The investment by TPG NewQuest and A91 Partners underlines investor optimism about the growth potential in India’s value fashion market. TPG NewQuest focuses on secondary transactions in Asia, while A91 Partners is known for backing scalable, consumer-facing businesses.

“We are excited to partner with Citykart as they continue to transform access to fashion in emerging Indian cities,” said a spokesperson from A91 Partners.

Conclusion

The success of Citykart’s Series B funding round will enable the company to strengthen its position in the fast-growing value retail industry in India. With millions of middle-income people in India looking to shop for quality fashion at affordable prices, Citykart has the opportunity to emerge as an iconic brand in non-metro markets throughout the country.

Citykart is embarking on an exciting growth journey with a tried-and-tested business model, growing number of stores and strong financial metrics which create a story that aligns seamlessly with the changin

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