New Delhi-based value retail chain Citykart has raised ₹100 crores from IDFC Alternatives and India SME Investment by selling a minority stake. This development can be marked as the very first external round of funding for Citykart. The startup will use the freshly raised capital to launch 100 stores in the Northern and Eastern region and expects to grow its revenue fourfold in the next few years.
“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.
Founded by Sudhanshu Agarwal in 2016, the retail chain is one of the largest family stores in North and North East India and currently operates around 15 retail outlets in Uttar Pradesh, Assam and Nagaland.
Citykart has opened 40 stores on an asset-light model in large retail malls across various small towns and cities in the Uttar Pradesh and Bihar state of India during the past two years. The revenue grew at an average of 32 per cent over the last two years.
IDFC Private Equity Fund IV continue to invest in Indian startups and this is the fourth investment from the fund. In the retail segment, this is IDFC’s first investment. The venture fund has invested in more than 45 startups across various funds. Earlier this month, IDFC invested ₹210 crores in Bengaluru-based co-living startup Zolo.