Citykart eyes $40 million fundraise amid Vishal Mega Mart IPO buzz
16 December 2024, Mumbai
Citykart, a value apparel retail chain, is negotiating with A91 Partners and TPG NewQuest to raise $35-40 million (Rs290-340 crore), according to sources. The funding round values the company at Rs1,350-1,500 crore, with $25 million (Rs210 crore) earmarked for secondary share sales and $10-15 million (Rs85-130 crore) as primary capital. Early investors like Investcorp and India SME Investments plan to dilute their stakes.
Founded in 2015 by Sudhanshu Agarwal, a former Vishal Mega Mart executive, Citykart operates over 130 stores and aims to expand to 300 outlets by 2026, focusing on tier-2 and tier-3 cities. The company lags behind its competitor, Vishal Mega Mart, which has 645 stores and is set for an Rs8,000-crore IPO.
Citykart's 2X revenue multiple trails Vishal Mega Mart’s expected 4-5X, but it plans aggressive growth. If the deal finalizes, it marks TPG’s return to Indian retail, leveraging its past success with Vishal Mega Mart.
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