Citykart, a growing value fashion retailer in India, has raised Rs 538 crore in a Series B funding round. This round is led by TPG NewQuest and A91 Partners and includes both primary and secondary investments. Out of the total, Rs 120 crore comes as fresh capital for the company, while Rs 418 crore comes through secondary share sales. With this new funding, Citykart’s estimated valuation is now close to Rs 1,400 crore.
The fresh funds will help Citykart expand its presence into underserved Indian states like Rajasthan, Jharkhand, Odisha, and Assam. The brand already has a strong customer base in Uttar Pradesh and Bihar, and now aims to repeat its success in new markets. The company currently operates 137 stores and is planning to open 40–50 new stores every year.
Investors Exit and Entry
In this funding round, Bahrain-based Investcorp has made a complete exit from Citykart. It had invested six years ago and reportedly earned four times its original investment. India SME Investments has also sold half its stake. With these exits, TPG NewQuest has become the largest institutional investor in the company, followed by A91 Partners and India SME.
Sudhanshu Agarwal, Citykart’s founder and managing director, said that the company is focused on growing profitably. It is also testing new store formats in peri-urban areas near Delhi and Gurugram. He noted that Citykart has been profitable for the past five years and is expected to reach Rs 1,300 crore in revenue by FY26, up from over Rs 900 crore in FY25.
Citykart IPO on Hold
While an IPO is being considered, Agarwal clarified that it is not an immediate goal. The company wants to grow its revenue and profits further before listing publicly. Citykart believes that better performance can lead to a higher valuation in the future.
Citykart follows a store-first strategy and focuses on value fashion through in-house brands like Athiya, Nimes, Fumee, and Remise. The company sees big opportunity in small-town India, where rising income levels are driving demand for affordable and organized retail.
