Indian grocery startup Citymall raises $47M to challenge ultra-fast delivery giants
Indian grocery startup Citymall raises $47M to challenge ultra-fast delivery giants and redefine how value-conscious shoppers in smaller towns buy groceries. The Series D funding was led by Accel, with continued support from WaterBridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
Image Credits:Citymall
This new round comes three years after Citymall’s $75 million Series C led by Norwest Venture Partners. Despite raising its total funding to $165 million, the company’s valuation has stayed flat at around $320 million. Investors said this reflects the cooling market conditions compared to the bullish period of its earlier round.
Why investors are betting on Citymall
According to sources, Citymall’s valuation is based on a nearly 4x multiple of its past year’s revenue. While the number hasn’t jumped, backers remain optimistic. Accel’s Pratik Agarwal said the value grocery segment in India is massive and still underserved.
“We have been an investor in Citymall since the Series A, and we wanted to double down with this investment because online grocery shopping, and especially the value segment, is the largest consumer market in India,” Agarwal told TechCrunch.
Standing out in India’s quick-commerce rush
Citymall’s funding arrives during a quick-commerce boom in India. Blinkit, Zepto, Swiggy Instamart, and Tata’s BigBasket are racing to deliver groceries in 10 minutes or less. But Citymall isn’t playing the same game.
Instead, the company is carving a niche by targeting shoppers in tier 2 and tier 3 towns who prioritize planned, budget-friendly purchases over impulse buys.
A different playbook for growth
CEO Angad Kikla explained that Citymall offers around half the product selection of a typical quick-commerce app but double that of an offline value store. This balance helps them serve the right mix of affordability and variety.
“While e-commerce is growing, online grocery penetration remains low,” Kikla said. “Most people in India are value-conscious when buying groceries. Our goal is to be the Dmart of the online world.”
The road ahead
Citymall’s approach reflects a broader shift in India’s e-commerce landscape. Instead of competing head-to-head with ultra-fast delivery players, the startup is betting on the massive demand from everyday households outside major metros.
With fresh funding in hand, Citymall is expected to double down on customer acquisition, expand its logistics capabilities, and refine its product catalog to cater to India’s growing value-driven consumer base.
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