Published
May 17, 2019
Reading time
2 minutes
Download
Download the article
Print
Text size

Citykart raises Rs 100 crore to aid brick-and-mortar expansion

Published
May 17, 2019

The value fashion and miscellaneous fast moving consumer goods brand Citykart has raised Rs 100 crore ($15 million) to aid its ongoing brick-and-mortar expansion plan for rural India. 

Citykart will use its new funds to aid its store expansion plan - Citykart- Facebook


Citykart raised its first ever round of external equity funding from IDFC Alternatives and India SME Investments. The brand will use the funds to help it open 100 new brick-and-mortar stores in the next two years.

For its next round of retail expansion, Citykart will focus on Tier 2, 3, and 4 towns in areas including Jharkhand, Orissa, Chhattisgarh, Uttar Pradesh, Bihar, and the North East. The brand aims to tap into the growing organisation of rural India’s fashion market with its value-fashion offerings and “family fashion” concept. The brand will also use its new funds to strengthen its back-end operations. 

“At Citykart, we have witnessed a definite shift of consumers from unorganised to organised retail, especially in Tier 2, 3 and 4 cities and towns,” Citykart’s founder and CEO Sudhanshu Agarwal told Images Business of Fashion. “The newly increased purchasing power and aspiration for a quality shopping experience are signalling significant traction and demand for fast fashion apparel at affordable prices in these towns. While our TG resides in these cities, this new funding will further help us in addressing this large and untapped opportunity in these markets.”

Citykart currently has around 40 stores in India and its average store size is 8,000 to 10,000 square feet. The brand retails fashion, accessories, and footwear for women, men, and children.

Copyright © 2024 FashionNetwork.com All rights reserved.