Citymall, a Gurgaon-based e-commerce startup focused on budget grocery delivery in India’s smaller cities, has raised $47M in Series D funding led by Accel, with participation from existing investors WaterBridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
The raise comes three years after its $75M Series C. Citymall’s valuation remains at $320M, unchanged since then, despite steady growth — a reflection of more conservative market conditions. In total, the company has raised $165M.
“Online grocery is still massively underpenetrated in India, especially in the value segment. That’s where Citymall is carving its niche,” said Pratik Agarwal of Accel.
Competing beyond quick commerce
Unlike ultra-fast players such as Blinkit, Zepto, Swiggy Instamart, and BigBasket, Citymall targets planned purchases from value-conscious households, often earning ₹15,000–₹80,000 ($170–$910) per month.
The app offers half the SKUs of a quick-commerce app but double that of an offline value store, and typically delivers orders in a day — without charging handling or delivery fees. Average order values are ₹450–₹500 ($5–$6).
The company now operates across 60 cities and states, including Delhi NCR, Uttar Pradesh, Haryana, Bihar, and Uttarakhand.
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Margins through efficiency
Founded in 2019 by Angad Kikla, Citymall initially relied on community leaders for marketing and fulfillment. Post-pandemic, the model shifted to using them primarily for distribution — cutting costs while maintaining local reach.
The company’s strategy emphasizes private labels, direct supplier partnerships, and operational efficiency to keep prices low while protecting margins. Although EBITDA margins were negative 30% last year, Citymall says it is operationally profitable, with expansion focused on adjacent cities to maximize warehouse capacity.
A long-term bet on India’s grocery market
Food and grocery remain the largest and least-digitized retail category in India. According to Bernstein, online grocery will account for 12% of e-commerce sales by year-end, while Bloomberg Intelligence predicts quick commerce could capture 20% of e-commerce by 2035.
“Citymall offers cheaper essentials by buying directly from suppliers and using community-led distribution, resulting in healthy margins,” said Manish Kheterpal, co-founder of WaterBridge Ventures.
With fresh capital, Citymall aims to cement its position as the “Dmart of the online world”, scaling a model designed to withstand India’s competitive grocery market.
