Meesho-rival CityMall raises $47M to boost presence in 'Bharat' markets
What's the story
Gurugram-based value e-commerce start-up CityMall has raised $47 million (approximately ₹414 crore) in a Series D funding round. The round was led by venture capital firm Accel and saw participation from existing investors Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures. The fresh capital will be used to strengthen its distribution network in smaller cities and improve supply chain efficiency.
Business model
CityMall's mission to transform small-town consumption
Founded in 2019 by IIT alumni Angad Kikla and Naisheel Verdhan, CityMall is a value e-commerce platform catering to consumers in Tier-II and III towns. The company offers affordable products across categories such as fashion, home, kitchen, packaged food through a network of community leaders who aggregate demand in their localities. "CityMall was born from a simple belief—that the next wave of India's growth will be shaped in its small towns," said Kikla.
Competitive edge
Revenue growth and losses
CityMall has differentiated itself from larger horizontal platforms by offering affordable goods to middle- and lower-income households in "Bharat" markets. The company's revenue for FY24 stood at ₹460 crore, a 22% increase from ₹376 crore in FY23. However, losses also widened to ₹159 crore in FY24 from ₹137 crore the previous year due to expansion costs and investments into technology and logistics.
Growth strategy
Plans for the future
CityMall plans to use the fresh capital to deepen its presence in current markets, expand into adjacent regions, grow its portfolio of private labels and brand partnerships, and hire new talent. The company operates in Delhi-NCR and over 60 cities across Uttar Pradesh, Haryana, Uttarakhand, and Bihar. It has raised a total of $165 million to date. Kikla said they are scaling at a 2x year-on-year rate while inching closer toward profitability.