CityMall raises $47 million in funding led by Accel to deepen Bharat push

CityMall founders (L to R) - Angad Kikla, Rahul Gill, Naisheel Verdhan

CityMall, the Gurugram-based value e-commerce startup, has raised $47 million (about Rs 414 crore) in a fresh funding round led by Accel at a flat valuation, as the company looks to expand its presence in India’s smaller towns and sharpen its focus on the mass-market consumer segment.

The Series D round also saw participation from existing backers Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures. Notably, the latest fundraise has been closed at a valuation of around $320 million — lower than the $350 million mark at which CityMall raised its previous Series C round.

In May, Moneycontrol had exclusively reported that the company was in talks to raise funds at a slightly lower valuation.

"To clarify, this is not a down round. The last round was also at a valuation equivalent to $320M in rupee terms. The earlier $350M figure was only a result of the dollar-rupee exchange rate at that time. If you apply today’s exchange rate, the previous round too works out to $320M, making this a flat valuation," a CityMall spokesperson said.

With this round, the company’s cumulative funding has touched $165 million. It had previously raised $75 million in a round led by Norwest Venture Partners in 2022.

Founded in 2019 by IIT alumni Angad Kikla and Naisheel Verdhan, CityMall operates as a value e-commerce platform targeting consumers in Tier-II and Tier-III towns. It offers low-cost products across categories such as fashion, home, kitchen, and packaged food, distributed through a network of community leaders who aggregate demand in their localities.

The company said the fresh capital will be deployed to deepen its distribution network across smaller cities, expand private label offerings, and further improve supply chain efficiency.

“CityMall was born from a simple belief—that the next wave of India's growth will be shaped in its small towns and communities. Families in these regions have long been overpaying for essentials due to limited choices. By marrying technology with a disruptive low-cost distribution model, we are creating something meaningful for the next India,” said Angad Kikla, co-founder and CEO of CityMall.

Accel partners Rachit Parekh and Pratik Agarwal said, “CityMall has built something truly differentiated—a low-cost supply chain model that makes e-commerce viable for underserved communities. They’ve reimagined commerce for value-conscious consumers overlooked by traditional online platforms.”

CityMall’s strategy has been to differentiate itself from larger horizontal platforms by offering affordable goods to middle- and lower-income households in “Bharat” markets, where value-conscious consumers dominate.

CityMall had clocked revenues of Rs 460 crore in FY24, a 22 percent increase from Rs 376 crore in FY23. However, its losses also widened to Rs 159 crore in FY24 from Rs 137 crore the previous year, reflecting the costs of expansion and investments into technology and logistics.

The funding comes at a time when India’s e-commerce market is seeing strong traction in smaller towns, with players like Meesho and DealShare also targeting similar consumer bases.

While the overall funding environment remains tight, investors are continuing to back companies that can build sustainable, large-scale businesses in underpenetrated segments of the market.

With Accel leading the round, and continued support from its existing investors, CityMall is betting that its “Bharat-first” positioning and cost-efficient distribution model will help it carve out a meaningful share of the country’s fast-growing value e-commerce segment.