Citykart, one of India’s fastest-growing value fashion retailers, has raised Rs 538 crore in a Series B funding round, marking one of the largest investments in the country’s budget apparel segment to date.
The round was co-led by TPG NewQuest, the Asia-focused secondary private equity arm of TPG, and A91 Partners, a domestic growth-stage investment firm.
The funding signals a shift in Citykart’s investor profile. Investcorp, an early investor, has exited fully, while India SME Fund has retained a minority stake. EY India acted as the exclusive financial advisor to the transaction.
“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,” said Sudhanshu Agarwal, co-founder of Citykart. “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.”
Of the total funding, about Rs 120 crore is primary capital, with the remaining Rs 418 crore being towards secondary transactions. The primary infusion will enable the company to accelerate expansion in both footprint and product assortment.
The company expanded its store network to 137 stores and now serves over 15 million customers across India. Growing at over 40 per cent, the company is now targeting revenue of more than Rs 1,300 crore.
Bharati Agarwal, managing director at TPG NewQuest, said 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,” said Agarwal.
Prasun Agarwal, partner at A91 Partners, said the investment firm is impressed with Citykart’s tailored value proposition for Bharat. “Their commitment to operational excellence and customer-centricity resonates strongly with our investment approach,” said Agarwal.
Anshuman Goenka, partner at Investcorp, said the investment firm believed in founder Sudhanshu Agarwal’s vision and leadership to develop Citykart into a strong value retail franchise.
Citykart has expanded its footprint with 12 new stores across the country. With this latest addition, the brand now operates 137 stores across 91 cities in 11 states, further strengthening its reach in underserved yet budget-conscious markets.
 "Citykart raises Rs 538 crore in Series B round led by TPG NewQuest, A91")
