Latest news with #SudhanshuAgarwal
Fashion Network
3 days ago
- Business
- Fashion Network
Citykart Ventures secures approx $65 million strategic investment
Value fashion retailer Citykart has secured Rs 538 crore in Series B funding, one of the largest investments in India's affordable fashion segment. The round was co-led by TPG NewQuest, a private equity platform under TPG, and A91 Partners, a domestic growth-focused investment firm. Of the total capital raised, around Rs 120 crore is primary funding to support Citykart's expansion in retail presence and product range, Entrackr reported. The remaining Rs 418 crore came from secondary transactions, facilitating an exit for early investor Investcorp. According to media reports, Investcorp's initial investment of Rs 75 crore in 2019 has grown to an exit value of approximately Rs 280–300 crore. India SME Fund retains a minority stake. Headquartered in Gurugram, Citykart has recently added 12 stores, bringing its total to 137 outlets across 91 cities in 11 states. The retailer focuses on Tier 2 and Tier 3 cities with in-house labels such as Athiya, Nimes, Fumee, and Remise, catering to over 15 million annual customers. Founder Sudhanshu Agarwal has previously stated the brand is targeting Rs 1,300 crore in annual revenue and aims to reach 300 stores. With a current growth rate exceeding 40%, Citykart positions itself as a budget-friendly fashion destination inspired by global models, according to its Facebook page.
Arabian Business
5 days ago
- Business
- Arabian Business
Bahrain's Investcorp sells entire stake in Indian retailer Citykart
Investcorp, a Bahrain-based leading global alternative investment firm, announced the sale of its entire stake in Citykart, one of India's fastest-growing value retailers focused on Tier-2 and Tier-3 towns, to TPG NewQuest and A91 Partners. It represents the fifth full exit from the firm's India Consumer Growth Portfolio (ICGP) and the sixth liquidity event for the India franchise in the past 32 months. Gaurav Sharma, Partner & Head of India Investments at Investcorp, said Citykart was the very first deal the firm executed after formally entering India in 2019. Investcorp exits Citykart stake 'It epitomised our strategy of backing category-defining, founder-led businesses in high-growth segments. 'Today's outcome underscores our ability to generate attractive risk-adjusted returns, while supporting India's consumption story,' he said. The operating scale-up has seen Citykart's store network expand dramatically from 37 to 137 stores, leading to an estimated revenue of $102 million (INR 8.8 billion) for FY 2025. Investcorp said it has been instrumental in fostering a strategic partnership with Citykart founder Sudhanshu Agarwal, focusing on building a professional second line, integrating the W-Mart acquisition, revitalising underperforming stores, and optimising sourcing and inventory processes. Yusef al Yusef, Global Head of Distribution at Investcorp, said partnering with the Citykart team to triple the store base, steer the business through the pandemic and still outperform the fund's underwriting is immensely satisfying. 'We thank all stakeholders and are confident that TPG NewQuest and A91 will help Citykart accelerate its next growth phase,' he said. Besides Citykart, Investcorp's other recent realisations include the sale of its stake in luggage maker Safari Industries, a profitable exit from eyecare specialist ASG Eye Hospital, a planned IPO-led exit from health-benefits administrator Medi Assist Healthcare, and a partial exit from dialysis network NephroPlus. Investcorp's India private equity strategy targets asset-light opportunities across consumer and retail, healthcare, financial services, B2B and technology. Its active Indian holdings include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the buy-out of NSE IT, rechristened NuSummit.
Biz Bahrain
5 days ago
- Business
- Biz Bahrain
Investcorp Announces Sale of Citykart to TPG NewQuest and A91 Partners
Investcorp, a leading global alternative investment firm, today announced the sale of its entire stake in Citykart, one of India's fastest-growing value retailers focused on Tier-2 and Tier-3 towns, to TPG NewQuest and A91 Partners. It represents the fifth full exit from the firm's India Consumer Growth Portfolio (ICGP) and the sixth liquidity event for the India franchise in the past 32 months. The operating scale-up has seen the store network expand dramatically from 37 to 137 stores. This leads to an estimated revenue of INR 8.8 billion (about US $102 million) for FY 2025. This growth is mirrored by a matching growth in EBITDA, with sustained industry leading margins. It has consistently delivered profitability while building core functions, strengthening governance, and attracting strong talent across leadership and mid-management levels. Furthermore, Investcorp has been instrumental in fostering a strategic partnership with founder Sudhanshu Agarwal, focusing on building a professional second line, integrating the W-Mart acquisition, revitalising under-performing stores, and optimising sourcing and inventory processes. Gaurav Sharma, Partner & Head of India Investments at Investcorp, said: 'Citykart was the very first deal we executed after formally entering India in 2019, and it epitomizes our strategy of backing category-defining, founder-led businesses in high-growth segments. Today's outcome underscores our ability to generate attractive risk-adjusted returns while supporting India's consumption story.' Yusef al Yusef, Global Head of Distribution atInvestcorp, commented: 'Partnering with the Citykart team to triple the store base, steer the business through the pandemic and still outperform our underwriting is immensely satisfying. We thank all stakeholders and are confident that TPG NewQuest and A91 will help Citykart accelerate its next growth phase.' Other recent realizations besides Citykart include the sale of its stake in luggage maker Safari Industries, a profitable exit from eyecare specialist ASG Eye Hospital, a planned IPO-led exit from health-benefits administrator Medi Assist Healthcare, and a partial exit from dialysis network NephroPlus. Investcorp's India private equity strategy targets asset-light opportunities across consumer & retail, healthcare, financial services, B2B and technology. Its active Indian holdings include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the buy-out of NSE IT, rechristened NuSummit among others, demonstrating Investcorp's commitment to scaling high-growth businesses while realising timely liquidity for investors.
Mid East Info
6 days ago
- Business
- Mid East Info
Investcorp Announces Sale of Citykart to TPG NewQuest and A91 Partners - Middle East Business News and Information
Manama, Bahrain,May 2025 — Investcorp, a leading global alternative investment firm, today announced the sale of its entire stake in Citykart, one of India's fastest-growing value retailers focused on Tier-2 and Tier-3 towns, to TPG NewQuest and A91 Partners. It represents the fifth full exit from the firm's India Consumer Growth Portfolio (ICGP) and the sixth liquidity event for the India franchise in the past 32 months. The operating scale-up has seen the store network expand dramatically from 37 to 137 stores. This leads to an estimated revenue of INR 8.8 billion (about US $102 million) for FY 2025. This growth is mirrored by a matching growth in EBITDA, with sustained industry leading margins. It has consistently delivered profitability while building core functions, strengthening governance, and attracting strong talent across leadership and mid-management levels. Furthermore, Investcorp has been instrumental in fostering a strategic partnership with founder Sudhanshu Agarwal, focusing on building a professional second line, integrating the W-Mart acquisition, revitalising under-performing stores, and optimising sourcing and inventory processes. Gaurav Sharma, Partner & Head of India Investments at Investcorp, said: 'Citykart was the very first deal we executed after formally entering India in 2019, and it epitomizes our strategy of backing category-defining, founder-led businesses in high-growth segments. Today's outcome underscores our ability to generate attractive risk-adjusted returns while supporting India's consumption story.' Yusef al Yusef, Global Head of Distribution atInvestcorp, commented: 'Partnering with the Citykart team to triple the store base, steer the business through the pandemic and still outperform our underwriting is immensely satisfying. We thank all stakeholders and are confident that TPG NewQuest and A91 will help Citykart accelerate its next growth phase.' Other recent realizations besides Citykart include the sale of its stake in luggage maker Safari Industries, a profitable exit from eyecare specialist ASG Eye Hospital, a planned IPO-led exit from health-benefits administrator Medi Assist Healthcare, and a partial exit from dialysis network NephroPlus. Investcorp's India private equity strategy targets asset-light opportunities across consumer & retail, healthcare, financial services, B2B and technology. Its active Indian holdings include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the buy-out of NSE IT, rechristened NuSummit among others, demonstrating Investcorp's commitment to scaling high-growth businesses while realising timely liquidity for investors. About Investcorp: Investcorp is a global investment manager specialising in alternative investments across four asset classes: Private Equity (Mid-Market Buyouts, Growth Investments, and GP Staking), Real Assets (Infrastructure and Real Estate), Credit (CLOs, Broadly Syndicated Loans & Structured Credit, and Middle-Market Direct Lending), and Liquid Strategies (Absolute Return Investments and Insurance Asset Management). Since our inception in 1982, we have focused on generating attractive returns for our clients and seeking to create long-term value in our portfolio companies by adopting a disciplined investment process, employing talented professionals, and utilizing the resources of a global institution with an innovative approach. We invest capital in our products and strategies, aligning interests with our clients and other stakeholders. We pursue sustainable value creation through our investments and in the communities in which we operate and take pride in partnering with clients to deliver tailored solutions for their needs. Today, Investcorp manages $55 billion in assets, including assets managed by third party managers. Investcorp has 14 offices in the US, Europe, GCC and Asia, including, India, China, Japan and Singapore and employs approximately 500 people from 50 nationalities globally.
Economic Times
6 days ago
- Business
- Economic Times
TPG NewQuest, A91 back Citykart in Rs 538 crore round; retailer's valuation hits Rs 1,400 crore
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Value fashion retailer Citykart has raised Rs 538 crore in a funding round comprising both primary and secondary transactions, with participation from TPG NewQuest and A91 Partners The latest round is expected to value the company at around Rs 1,400 crore, people familiar with the development the total capital raised, Rs 120 crore is fresh capital that will be used to expand Citykart's footprint beyond its core markets of tier-II and tier-III cities in Uttar Pradesh and Bihar, its founder and managing director Sudhanshu Agarwal told part of the Rs 418-crore secondary share sale, early backer Investcorp has made a full exit while private equity firm India SME Investments has pared its holdings by half, people cited above which currently operates 137 stores, plans to open 40–50 new outlets annually across states like Rajasthan, Assam, Odisha, and Jharkhand. It competes with listed companies such as VMart, Vishal Mega Mart and Style Gurgaon-based company's revenues have grown around 70% over the past two fiscals to over Rs 900 crore in FY25, and is expected to cross Rs 1,300 crore in the ongoing fiscal, Agarwal said, adding that it has been profitable for at least the last five Investcorp — one of the largest alternative asset managers from the Middle East — has clocked a fourfold return on its 2019 investment in IDFC Alternatives and India SME Investments had together invested Rs 100 crore in Citykart. Investcorp acquired IDFC Alternatives' private equity and real estate investment funds in the latest funding round, secondaries-focused PE fund TPG NewQuest has become the largest institutional investor in Citykart, followed by Mumbai-based investment firm A91 Partners and India — a former executive at value retailer Vishal Mega Mart — and his family continue to hold a controlling 55–56% valuation multiple of about 1.5x its FY25 revenue is significantly lower than those of its listed rivals. VMart is trading at 2x FY25 revenue, while Vishal Mega Mart, which also sells groceries and general merchandise, is valued at 5.4x its FY25 topline. During the year, the apparel segment was 44% of Vishal Mega Mart's acknowledged that the firm would have been able to unlock better value as a public company, but added that going public was not an immediate priority.'IPO is on the cards but, for us, it's not a milestone that we want to achieve immediately... We want to double down on our revenue growth and profitability before thinking about an IPO,' he to Agarwal, the incoming investors have two ways to make money — 'by growing the business the way we've been doing in the past, or by getting multiples on their investment once we go public.'Citykart is trying new formats in rural parts of Delhi and Gurgaon, where the customer remains the same as its current geographies. The retailer wants to see if there's an opportunity in bigger cities, Agarwal said the growth being witnessed by companies in this space was on account of market share shifting from unorganised to organised players in the tier-II and tier-III geographies. 'With income levels increasing, we're excited that spending on apparel will become a big business in tier-II and tier-III cities because with a 10% increase in income levels, the disposable income rises by 50%,' he said omnichannel retail will emerge as the preferred mode for apparel retail in smaller towns. 'Online is still far away from becoming competition,' he said. 'Our average order value is Rs 300 — and at that price, ecommerce isn't viable in smaller towns. You need higher order values to make unit economics work.'Citykart's store count still lags peers Vmart, which has 497 outlets, and Vishal Mega Mart, which runs 696 ecommerce platform Meesho is another retailer betting big on smaller towns — more than 85% of its users come from tier-II towns and beyond. According to an April report by CLSA, Meesho's market share in terms of the number of orders for calendar 2024 stood at 37% among the various ecommerce platforms.
