New Delhi headqartered value retail chain Citykart has raised Rs 100 crore from private equity fund IDFC Alternatives and India SME Investment for a significant minority stake. This was first external round of funding for Citykart.
The fresh funding will help the retail startup to add 100 stores in the Northern and Eastern markets and grow revenue by fourfold in the next few years, an reported Financial Express.
The fund infusion will be done by parting a “significant minority stake” in the company. The company has opened 40 stores on an asset light model in large retail malls across various small towns and cities in UP and Bihar during the past two years. Its revenue has grown by an average of 32 percent over the last two years, the statement said without giving the absolute number.
Founded in 2016, by Sudhanshu Agarwal, CityKart is one of the largest family stores chain in North and North East India and operates 15 retail outlets that are currently present at states like Uttar Pradesh, Assam and Nagaland.
Prior to launching Citykart, Agarwal was Vice President.at TPG Wholesale (Vishal Mega Mart) and Vishal Retail Ltd., which are retail businesses owned by private equity fund TPG Capital.
“Citykart is addressing a large and untapped opportunity of providing fast fashion apparel at affordable prices to its customers in smaller towns and rural areas. We are delighted to partner with Citykart to fulfil its vision,” IDFC Alternatives’ partner Girish Nadkarni said.
This is the fourth investment from IDFC Private Equity Fund IV and the first investment from this fund in the retail segment, the statement said, adding the company has done 45 investments till now across funds.
Earlier this month, IDFC Alternatives has led the $30 million funding of Zolo, a Bangalore-based startup that offers managed co-living spaces to students and professionals.