Citykart, a value fashion retail chain focused on India’s Tier II and III cities, has raised Rs 538 crore in a Series B funding round led by TPG NewQuest and A91 Partners. The fundraise is among the largest private equity investments in the value retail segment and will help the company scale operations and deepen its pan-India presence.
Moneycontrol had first reported in December last year that Citykart was in talks to raise around Rs 340 crore from A91 Partners and TPG NewQuest, with a mix of primary and secondary capital.
The final round included Rs 120 crore in primary infusion and Rs 418 crore via secondary transactions.
The fundraise is a shift in Citykart’s investor base, where early backer Investcorp made a complete exit while India SME Fund continues to hold a minority stake. EY India acted as the exclusive financial advisor to the transaction.
Founded by Sudhanshu Agarwal, Citykart has emerged as one of the fastest-growing players in the value fashion segment, catering to aspirational customers in underserved markets. The retailer has expanded to 137 stores across 91 cities in 11 states, serving over 15 million customers annually. The retailer is targetting over Rs 1,300 crore in annual revenue with a growth rate of more than 40 percent.
“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,” said Agarwal. “The capital infusion will help us grow deeper and wider, invest in innovation, and build a future-ready organisation.”
The company’s store-first strategy is backed by a portfolio of in-house brands such as Athiya, Nimes, Fumee, and Remise. Citykart has plans to expand to 300 stores over the next few years, doubling down on fashion-conscious, budget-driven customers in smaller towns.
TPG NewQuest’s Bharati Agarwal said Citykart has shown strong execution in a difficult market. “Their deep customer understanding and disciplined operations make them well-positioned to lead value fashion retail in India,” she said.
Prasun Agarwal of A91 Partners added that Citykart’s tailored offering for Bharat aligns with the firm’s investment philosophy. “We’re excited to help build a category-defining business in Indian retail.”
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