Indian e-commerce startup Citymall has raised $47 million in its Series D funding round led by Accel, with support from existing investors including Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
The company’s valuation remains at $320 million, unchanged from its Series C round three years ago when it raised $75 million. Investors said the earlier figure reflected a bullish market environment, but they remain confident in Citymall’s growth. The startup has now raised a total of $165 million.
“We have been an investor in Citymall since the Series A, and we wanted to double down with this investment because we think online grocery shopping, and the value segment within that, is the largest consumer market in India,” said Pratik Agarwal of Accel.
Unlike quick commerce players such as Blinkit, Zepto, Swiggy Instamart, and BigBasket, Citymall focuses on planned purchases for value-conscious shoppers in tier 2 and tier 3 towns. CEO Angad Kikla said the platform offers about half the product range of a quick commerce app but twice that of an offline value store. “We want to think of ourselves as an equivalent of Dmart in the online world,” Kikla said.
Founded in 2019, Citymall initially relied on community leaders for customer outreach and last-mile delivery, before shifting their role to only fulfilment to cut costs. Its strategy now centres on private labels, supplier partnerships, and operational efficiencies that allow it to sell essentials at lower prices without charging delivery fees. Goods are typically delivered within a day, instead of minutes, for customers who do not require immediate service.
Citymall’s user base largely includes households earning between ₹15,000 and ₹80,000 per month, with average order values of ₹450 to ₹500. The company currently operates across 60 cities in Delhi NCR, Uttar Pradesh, Haryana, Bihar, and Uttarakhand, and plans to expand to nearby markets.
While the company reported more than 30 per cent negative EBITDA margins last year, it said it is operationally profitable and expects to achieve overall profitability in the future.
Investors believe Citymall’s cost-efficient model provides an edge. “Citymall offers cheaper essentials to users who might order a few times a month. The company buys goods directly from suppliers and uses its community leaders to achieve a low cost of distribution that results in building a healthy gross margin,” said Manish Kheterpal of Waterbridge Capital.
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