Citykart's big haul; A new AI race
Also in the letter:
■ Flipkart's growth charge ■ Earnings corner■ Agentic AI in BFSI
TPG NewQuest, A91 back Citykart in Rs 538 crore round at Rs 1,400 crore valuation
Sudhanshu Agarwal, founder, Citykart
Citykart, a value retail chain serving middle- and lower-income consumers in smaller Indian cities, has raised Rs 538 crore in a funding round led by TPG NewQuest and A91 Partners. The mix of primary and secondary transactions pegs the company's valuation at around Rs 1,400 crore, people familiar with the matter told us.
Deal details: Rs 120 crore in fresh capital will fund expansion beyond Citykart's core markets of Uttar Pradesh and Bihar.
Rs 418 crore was raised via secondary share sales.
Middle East-based alternative asset manager Investcorp has exited fully, clocking a 4x return on its 2019 investment.
Another early backer, India SME Investments, has pared its stake by half.
About the company: Citykart operates 137 stores across tier-II and tier-III cities, with plans to add 40–50 outlets annually in states like Rajasthan, Odisha, Assam, and Jharkhand. Revenues have grown by nearly 70% over the last two financial years to over Rs 900 crore in FY25.
Founder and MD Sudhanshu Agarwal said the company expects to cross Rs 1,300 crore in revenue in FY26, and noted that Citykart has remained consistently profitable for the last five years.
Context setting: Citykart plays in the mass-market apparel segment alongside listed firms such as VMart and private players like Vishal Mega Mart and Style Baazar. The fresh round underscores growing investor appetite for affordable fashion targeting India's non-metro consumers.
By comparison: VMart, a listed peer, is valued at Rs 5,500–6,000 crore and has an annual revenue of Rs 2,300 crore (around 2.5x sales).
Vishal Mega Mart, backed by Partners Group and Kedaara Capital, was last valued at nearly $1.3–1.5 billion (Rs 10,000–12,000 crore) with revenue exceeding Rs 7,000 crore.
Style Baazar, a regional player, has a comparable store count but a smaller scale and revenues of around Rs 500-600 crore. Post-deal, TPG NewQuest has emerged as Citykart's largest institutional investor, followed by A91 Partners and India SME.
Pet food brand Drools turns unicorn after Nestlé SA picks up minority stake
Homegrown pet food brand Drools turned unicorn after Swiss packaged food giant Nestlé SA acquired a minority stake for an undisclosed amount.
Hot cake: This is Drools' second major raise after LVMH-backed private equity firm L Catterton invested $60 million in June 2023 at a valuation of $600 million. The transaction underscores rising investor interest in India's $3.5 billion pet care market, with players like Godrej and Emami planning a foray.
Slikk raises $10 million: Bengaluru-based 60-minute fashion delivery startup Slikk has raised $10 million in a funding round led by Nexus Venture Partners.
Operation Coding war, thanks AI
A fresh front has opened in the AI wars, as global tech giants and nimble startups race to dominate the future of software development.
What's happening: Google has unveiled its coding agent Jules.
Microsoft has launched its GitHub AI agent.
OpenAI has rolled out Codex and acquired Windsurf to bolster its arsenal.
Rapid adoption: Google and Microsoft say AI now writes around 30% of their code. At InMobi, founder Naveen Tewari claims the figure is already 50%. The AI coding tool market is projected to reach $12.6 billion by 2028, growing at a CAGR of 28%, according to market intelligence firm MarketsandMarkets.
The draw? A compelling mix of higher productivity, intuitive interfaces, and strong value-for-money.
Challenges: But, as AI writes more code, teams are left reviewing more of it. Several founders we spoke to said they've automated large parts of the review process to avoid any customer-facing fallout.
Sponsor ETtech Top 5 & Morning Dispatch!
Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.
The opportunity: Reach a highly engaged audience of decision-makers.
Boost your brand's visibility among the tech-savvy community.
Custom sponsorship options to align with your brand's goals.
What's next: Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.
Flipkart reports up to 25% growth amid ecommerce slowdown
Kalyan Krishnamurthy, group CEO, Flipkart
Flipkart group CEO Kalyan Krishnamurthy outlined the company's growth trajectory and IPO plans at an internal town hall on Monday.
What's new: Krishnamurthy told employees that Flipkart is seeing 20–25% year-on-year growth in orders across its platforms in May, with expectations of hitting 30% growth in June, defying a broader slowdown in the ecommerce sector.
Why it matters: The update comes as Flipkart prepares to shift its domicile from Singapore to India, aligning with domestic regulations ahead of a planned IPO in 2026.
By the numbers:
Zoom out: Krishnamurthy and top executives Ramesh Gururaja, Hemant Badri, and Seema Nair used the town hall to lay out priorities across supply chain, customer experience, and HR.The group is also focusing on Gen Z consumers through fashion, travel, and Shopsy, its value platform competing with Meesho and Amazon Bazaar.
FirstCry's Q4 loss widens to Rs 111 crore; full-year Ebitda improves
Supam Maheshwari, CEO, FirstCry
Brainbees Solutions, which operates omnichannel baby products retailer FirstCry, reported a consolidated net loss of Rs 111 crore in Q4 FY25, widening from Rs 43 crore in the year-ago period and Rs 15 crore in the previous quarter. Operating revenue stood at Rs 1,930 crore, up 16% year-on-year but down 11% sequentially.
Nazara Technologies Q4 revenue nearly doubles; net profit rises to Rs 4 crore
Nitish Mittersain, CEO, Nazara Technologies
Online gaming firm Nazara Technologies posted a strong growth in the fourth quarter of FY25. The firm reported a 95% rise in operating revenue to Rs 520 crore, while net profit surged to Rs 4 crore from Rs 18 lakh in the year-ago period.
Awfis net profit rises nine-fold in Q4, revenue up 46%
Sumit Lakhani, CEO, Awfis
Office space solutions provider Awfis recorded a 46% rise in operating revenue to Rs 339 crore for the March quarter, fueled by greater enterprise contributions, allied services, and better efficiency. Net profit rose ninefold to Rs 11.3 crore.
Other Top Stories By Our Reporters
(L-R) Harsh Jain, Neeraj Singh, Lalit Keshre and Ishan Bansal, cofounders, Groww
Groww files draft papers for IPO, eyes $700 million to $1 billion listing: Online investment platform Groww has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO), according to a public notice on May 25.
Financial services players use agentic AI to automate workflows: The BFSI sector, including players like HDFC Bank, State Bank of India (SBI), and Wells Fargo, is planning to leverage agentic AI to automate workflows intelligently.
Global Picks We Are Reading
■ How I shorted $TRUMP coin (and got to have dinner with the President) (The Verge)
■ Here are the nuclear fission startups backed by Big Tech (TechCrunch)
■ The real cost of AI is being paid in deserts far from Silicon Valley (Rest of World)
Updated On May 27, 2025, 07:23 AM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
After decade-long ordeal, Bengaluru flat buyers without sale deed win interest payout
Bengaluru: In a major relief to homebuyers, Karnataka Real Estate Appellate Tribunal (KREAT) has ordered a city-based builder to pay interest on the Rs 34.4 lakh refunded to a family that waited nine years for possession of a flat that never came with a registered sale deed. Though Karnataka Real Estate Regulatory Authority (Rera) ordered a refund in 2023, it denied interest. Overruling this, the tribunal on July 25, 2025, upheld the complainants' right to interest under Rera. The story began in Sept 2013, when Begur-Hulimavu Road residents K Kiran Sarat and Subhagya S Kumar booked a flat in Suadela's 'Queens Gate' project. Over the next four years, the mother-son duo paid Rs 34.4 lakh in instalments toward the total sale consideration of Rs 80.1 lakh. The builder promised to deliver possession within four years of booking. However, no registered sale agreement was executed, nor was the apartment handed over. Despite repeated follow-ups, the builder failed to register the agreement or deliver possession. In March 2022, BBMP issued a partial occupancy certificate for the project — almost nine years after the first payment. By then, the family had decided to exit the project because of the prolonged delay. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru | Gold Rates Today in Bengaluru | Silver Rates Today in Bengaluru The duo filed a complaint on July 20, 2022, before K-Rera, seeking a refund along with interest. Rera, in its order dated Dec 2, 2023, directed the promoter to refund Rs 34.4 lakh but rejected the complainants' demand for interest. Rera reasoned that there was no registered agreement in place and the buyers chose to withdraw from the project voluntarily. The family appealed that decision before KREAT. The buyers alleged that the builder had violated Section 13 of the Rera Act, which prohibits accepting more than 10% of the flat cost without executing a registered agreement. They highlighted a 2016 email from the builder stating that the basement slab was constructed only after 3.5 years, clearly indicating delays. They also submitted that the standard construction agreement used with other buyers specified a 30-month delivery period with a six-month grace time, and said that possession was clearly understood to be due within three years of the first payment. The buyers further stated that the builder contacted them only in Aug 2018 — five years after booking — to execute an agreement. By then, frustrated by the inordinate delay, they wanted to withdraw from the project. The final cancellation was done in Feb 2019. In 2024, the builder refunded the entire amount via two demand drafts of Rs 17.2 lakh each. The builder's counsel, on the other hand, argued that the buyers had defaulted on pending instalments and not responded to repeated notices, including a final pre-cancellation notice issued in Oct 2018. They maintained that once the buyers accepted the refund, their right to claim interest was forfeit. The promoter also stated that the project was registered with Rera until Aug 2022, implying there was no delay on its part. The tribunal, after hearing both sides, observed that the developer had violated mandatory legal provisions and failed to execute a sale agreement despite collecting a substantial portion of the flat cost. It also found "untenable" the argument that the absence of a registered agreement barred the buyers from claiming interest. The tribunal noted that the builder took nearly a decade to obtain even partial occupancy, with registration under Rera coming only in Oct 2017 — four years after the buyers' first payment. It added that the builder reached out about executing the agreement only after five years of booking. Such delays, the tribunal held, amounted to gross deficiency of service. The tribunal has now ordered the builder to pay interest at 9% per annum on the principal amount up to April 30, 2017. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Happy Krishna Janmashtami Wishes ,, messages , and quotes !
Time of India
36 minutes ago
- Time of India
‘Extortion': Court slaps 10-lakh fine on RWA secretary
New Delhi: Pointing out that the facts are "shocking and alarming", Delhi High Court has slapped a cost of Rs 10 lakh on a purported general secretary of an RWA for allegedly extorting money from property owners against whom he filed petitions alleging illegal construction. In a rare move, the court also referred the case of the lawyer representing the RWA office holder, to the Bar Council of Delhi to assess violations of rules and regulations. "These facts are alarming and shocking, which disclose the deplorable conduct of the petitioner in filing cases for extorting money from people by misusing and abusing the process of this court. On the one hand, the court has to deal with cases of unauthorised constructions strictly with an iron hand; at the same time, the court has to ensure that the process of the court is not misused by anyone in order to extort money from the persons undertaking such construction. A proceeding before a court is a solemn process for furthering the cause of justice, and not for aiding unlawful objectives of certain individuals," Justice Mini Pushkarna noted in a recent order. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi | Gold Rates Today in Delhi | Silver Rates Today in Delhi The court was hearing a contempt petition against Anil Lodhi, who claimed to head the Azad Market RWA, and had filed multiple cases against alleged unauthorised construction on Roshanara Road and Rani Jhansi Road, Jhandewalan, as well as alleged misuse of electricity and water. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo However, during the proceedings, it emerged that Lodhi was allegedly approaching property owners to extort money, using threats of legal action. He was represented by advocate Babu Lal Gupta, and both also run an unregistered NGO, Green Gold Earth of World. "These petitions are being filed by purported NGOs for clearly oblique motives," the court observed. "This is a case of suppression of material facts, with the NGO not even being registered."The court held that both Lodhi and Gupta were involved in a scheme under the guise of the RWA and the NGO, and that their actions amounted to impersonation and abuse of judicial process. In light of Gupta's involvement, the court directed the Bar Council of Delhi to examine his conduct and determine if it violated professional standards. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Happy Krishna Janmashtami Wishes ,, messages , and quotes !
United News of India
an hour ago
- United News of India
Modi's visionary plan to open up space sector a true game changer : ISpA
Chennai, Aug 15 (UNI) The Indian Space Association (ISpA) today hailed Prime Minister Narendra Modi mentioning the growth in India's space sector in his Independence Day address and said his visionary plan to open up India's space sector has been a true gamechanger. Backed by progressive reforms such as the Space Policy, liberal FDI push and strong government support, the industry has grown multi-fold in just five years, ISpA Director General Lt Gen AK Bhatt (retd) said. "The surge in space startups and their achievements reflects an unprecedented wave of innovation and ambition among our youth", he said. "With this momentum, we are confident of achieving the goal of USD 44 billion space economy by 2033 and cementing India's position among the world's leading spacefaring nations. This is not just growth, it's a national movement inspiring every Indian to aim higher and reach for the stars', he added. UNI GV 1340
