Indian value fashion retailer Citykart has raised as much as Rs 538 crore ($63 million) in a Series B funding co-led by TPG NewQuest, a secondary PE platform for Asia within the TPG group, and A91 Partners, a domestic investment firm specialising in growth investments.
The development marks one of the largest investments in the country’s budget apparel segment to date, according to media reports.
The transaction paved the exit for the company’s early backer Investcorp, a Bahrain-based private equity firm, that is understood to have parked Rs 75 crore in 2019.
The company raised approximately Rs 120 crore as primary capital, while the remaining sum comprised secondary funding.
Citykart also counts SME Fund as its existing backer, which continues to hold a minority stake in the company.
EY India is said to have facilitated the transaction as an exclusive financial advisor.
Citykart, headquartered in Gurugram, caters to customers in India’s tier 2, 3, and 4 cities. It offers affordable fashion across categories for men, women, and children. It also has a range of footwear, accessories, home furnishings, toys, and general merchandise.
In FY24, the company is understood to have reported an operating income of Rs 628 crore, a jump from Rs 524 crore a year ago.
