Citykart has raised INR 538 crore in Series B funding round, co-led by TPG NewQuest, a secondary private equity platform for Asia within TPG, and A91 Partners, a homegrown investment firm specialising in growth investments.

Investcorp, an early backer of Citykart, has made a full exit, while India SME Fund continues to hold a minority stake. EY India acted as the exclusive financial advisor to the transaction.

Of the total funding, about INR 120 crore is primary capital, with the remaining INR 418 crore being towards secondary transactions. The primary infusion will enable the company to accelerate expansion in both footprint and product assortment.

“This new round of funding is a significant milestone in our journey. We are delighted to welcome TPG NewQuest and A91 Partners as long-term partners who believe in our vision of making affordable fashion accessible to Bharat. The capital infusion will help us grow deeper and wider, invest in innovation, and build a strong, future-ready organisation focused on scale and operational excellence. We’ve been fortunate to have had the support of Investcorp and India SME Fund in our earlier stages, their belief in our model helped us build a strong foundation,” said Sudhanshu Agarwal, Co-founder Citykart.

The company expanded its store network to 137 stores and now serves over 15 million customers across India. Growing at more than 40 per cent, the company is now targeting revenue of INR 1300 Cr.

“Citykart has demonstrated an exceptional ability to scale profitably in one of the most challenging and underserved segments of Indian retail. Their deep customer understanding, disciplined execution, and strong leadership team make them well-positioned to drive value fashion retail across India. We are excited to partner with them in this next phase of growth,” said Bharati Agarwal, TPG NewQuest.