Citykart is in talks with A91 Partners and TPG NewQuest to raise US $ 35-40 million (approximately Rs. 290-340 crore). Of the total, US $ 25 million (Rs. 210 crore) will facilitate secondary share sales, while US $ 10-15 million (Rs. 85-130 crore) is allocated as primary capital. Early investors, including Investcorp and India SME Investments, are set to dilute their stakes.
Sudhanshu Agarwal, founder of Citykart and a former Vishal Mega Mart executive, currently operates over 130 stores and is planning to expand to 300 outlets by 2026 while focusing on Tier-2 and Tier-3 cities and on the other side its competitor Vishal Mega Mart, operates 645 stores and is preparing for an Rs. 8,000-crore IPO, Citykart is pursuing aggressive growth strategies.
While Citykart’s 2X revenue multiple lags behind Vishal Mega Mart’s expected 4-5X, the potential funding could accelerate its expansion plans. For TPG, this marks a potential return to Indian retail, leveraging its successful past investment in Vishal Mega Mart.
